For every level of output, marginal revenue is:
A) higher than price.
B) less than price.
C) equal to price.
D) undetermined.

Name: For every level of output, marginal revenue is: A) higher than price. B) less than price. C) equal to price. D) undetermined.
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Question

Quizplus · Accepted Answer

In a competitive market, marginal revenue is equal to price. However, in a monopolistic or imperfectly competitive market, marginal revenue is less than price because the firm must lower the price to sell additional units.

For Every Level of Output, Marginal Revenue Is