Economics 9708 · AS & A Level · 7.6

7.6 — practice question

A firm is operating in perfect competition. What will happen to the firm’s revenue if it raises output by 5%?

  • AIts revenue will be unchanged.
  • BIts revenue will increase by 5%
  • CIts revenue will increase by less than 5%.
  • DIts revenue will increase by more than 5%.

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