In a perfectly competitive market, what is the relationship between price and marginal revenue for a firm?

Show Answers

The price is equal to the marginal revenueThe price exceeds the marginal revenueThe price matches the total revenueThe price is the same as the total cost

Explanation

In perfect competition, the firm is a price taker, so the price remains constant for each additional unit sold, making the price equal to the marginal revenue. Options B, C, and D incorrectly describe the relationship between price and revenue or cost.