If a graph is used to compare total revenue and total cost of a perfectly competitive firm, then the horizontal axis of the graph will represent the _______________ and the vertical axis will represent ______________________ .
A. price, measured in dollars; quantity of goods produced
B. total costs measured in dollars; quantity of goods produced
C. quantity produced; both total revenue and total costs, measured in dollars.
D. quantity produced; total revenue and total variable costs, measured in dollars.
Answer:C
If a graph is used to compare total revenue and total cost of a perfectly competitive firm, then the horizontal axis of the graph will represent the _______________ and the vertical axis will represent ______________________ .
A. price, measured in dollars; quantity of goods produced B. total costs measured in dollars; quantity of goods produced C. quantity produced; both total revenue and total costs, measured in dollars. D. quantity produced; total revenue and total variable costs, measured in dollars.
Explanation: 30. Under perfect competition, any profit-maximizing producer faces a market price equal to its