For a firm operating in a perfectly competitive industry, marginal revenue and average revenue are equal.

Name: For a firm operating in a perfectly competitive industry, marginal revenue and average revenue are equal.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

In a perfectly competitive market, the price of the product is determined by the market and is the same for all firms. Therefore, each additional unit sold (marginal revenue) brings in the same amount of revenue as the average revenue per unit sold.

For a Firm Operating in a Perfectly Competitive Industry, Marginal