How will a decrease in the equilibrium price in the market of a perfectly competitive industry affect the total revenue of a typical firm
A. Both total revenue and economic profit will increase at all rates of output
B. Both total revenue and economic profit will remain same
C. Both total revenue and economic profit will decrease at all rates of output
D. None of the above are true
Answer:C
How will a decrease in the equilibrium price in the market of a perfectly competitive industry affect the total revenue of a typical firm
A. Both total revenue and economic profit will increase at all rates of output B. Both total revenue and economic profit will remain same C. Both total revenue and economic profit will decrease at all rates of output D. None of the above are true