In a perfectly competitive market, what does the marginal revenue for a firm equal?

Multiple choice question for Costs , Supply And Perfect Competition. Select an option, then review the explanation below.

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The total income earned divided by the amount soldThe number of units soldThe average income per unit divided by the quantity soldThe market price of the product

Explanation

Marginal revenue for a firm in perfect competition is equal to the price of the product because the firm is a price taker and sells each additional unit at the market price.

Practice related questions from the same subject.

1.In the context of a perfectly competitive firm, what represents its short-run supply curve and its long-run supply curve respectively?
2.Under what condition will a firm cease production and produce nothing in the short term?
3.In the short run, the average total cost is composed of which two components?
4.What is the relationship between marginal cost and average cost when the average cost is decreasing and when it is increasing?
5.What does it indicate when the long-run average cost curve slopes downward from left to right?

In a perfectly competitive market, what does the marginal revenue for a firm equal?

Explanation

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