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For an imperfectly competitive firm (A) total revenue straight upsloping line because a firm's sales are independent of product price (B) the marginal revenue curve lies above the demand curve because any reduction in price applies to all units sold (C) the marginal revenue curve lies below the demand curve because any reduction in price applies to all units sold (D) marginal revenue curve lies below the demand because any reduction in price applies to only extra unit sold?
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For an imperfectly competitive firm (A) total revenue straight upslopi...
Explanation: Imperfectly Competitive Firm


Imperfect competition refers to a market structure in which firms have some control over the price they charge for their products. In an imperfectly competitive market, firms are either price-makers or price-takers. A price-maker is a firm that has the ability to influence the price of its product, while a price-taker is a firm that has no control over the price of its product.


Total Revenue Curve


A firm's total revenue curve shows the total amount of revenue it receives from selling a given quantity of its product at different prices. In an imperfectly competitive market, the total revenue curve is upward sloping because a firm's sales are not completely dependent on the price of its product. This means that if a firm increases its price, it will not necessarily lose all of its customers.


Marginal Revenue Curve


The marginal revenue curve shows the change in a firm's total revenue as a result of producing and selling one additional unit of its product. In an imperfectly competitive market, the marginal revenue curve lies below the demand curve because any reduction in price applies to all units sold. This means that if a firm reduces its price, it will earn less revenue on all of its units, not just the additional unit.


Therefore, the correct option is (C) the marginal revenue curve lies below the demand curve because any reduction in price applies to all units sold.
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For an imperfectly competitive firm (A) total revenue straight upsloping line because a firm's sales are independent of product price (B) the marginal revenue curve lies above the demand curve because any reduction in price applies to all units sold (C) the marginal revenue curve lies below the demand curve because any reduction in price applies to all units sold (D) marginal revenue curve lies below the demand because any reduction in price applies to only extra unit sold?
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For an imperfectly competitive firm (A) total revenue straight upsloping line because a firm's sales are independent of product price (B) the marginal revenue curve lies above the demand curve because any reduction in price applies to all units sold (C) the marginal revenue curve lies below the demand curve because any reduction in price applies to all units sold (D) marginal revenue curve lies below the demand because any reduction in price applies to only extra unit sold? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about For an imperfectly competitive firm (A) total revenue straight upsloping line because a firm's sales are independent of product price (B) the marginal revenue curve lies above the demand curve because any reduction in price applies to all units sold (C) the marginal revenue curve lies below the demand curve because any reduction in price applies to all units sold (D) marginal revenue curve lies below the demand because any reduction in price applies to only extra unit sold? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for For an imperfectly competitive firm (A) total revenue straight upsloping line because a firm's sales are independent of product price (B) the marginal revenue curve lies above the demand curve because any reduction in price applies to all units sold (C) the marginal revenue curve lies below the demand curve because any reduction in price applies to all units sold (D) marginal revenue curve lies below the demand because any reduction in price applies to only extra unit sold?.
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