Clara produces and sells tomatoes in a perfectly competitive market. This implies that Clara’s marginal revenue generated from selling an additional unit of tomatoes is always equal toMultiple Choiceprice.average cost.variable cost.profit per unit.

Suppose that the market for rice is competitive. This means that the farmer will maximise profit by choosing:Group of answer choicesto produce the quantity at which average fixed cost is minimized.to sell its wheat at a price where marginal cost is equal to average total cost. the quantity at which market price is equal to the farm’s marginal cost of production.the quantity where average revenue is equal to the farm’s average variable cost.

Lisa produces trumpets in a perfectly competitive market. Her only fixed cost is the rent she pays for her factory. Which of the following statements are true: Liz produces lemonade in a perfectly competitive market. Her only fixed cost is the rent she pays for her factory Lisa's average fixed costs will always be constant in this situation. Lisa's average variable cost curve will always be linear in this situation. If quantity produced increases, Lisa's average fixed costs will decrease. To maximise profit, Lisa should look for the point where the marginal cost is equal to the average total cost.

In perfect competition, price is equal to marginal revenue. Group of answer choicesTrueFalse

In a perfectly competitive market, price per unit to a buyer equals __.Multiple choice question.total revenue to a selleraverage revenue to a selleraverage profits to a sellertotal profits to a seller

At 12 tons of potato production, Lerato's agribusiness firm has marginal revenue equals marginal cost. This is a point of_________ A. Collusion B. Profit maximization C. Market equilibrium D. Diminishing returns to scale