Exhibit 8-1 Quantity and total revenue data for a firm $$\begin{array} { | c | c | }
\hline \text { Quantity } & \text { Total Revenue } \
\hline 0 & \$ 0 \
1 & 62 \
2 & 124 \
3 & 186 \
\hline
\end{array}$$
-In the perfectly competitive market, individual firms exert no effect on the market price. Therefore, the firm's marginal revenue curve is:
A) indeterminate.
B) an upward-sloping curve.
C) a downward-sloping curve.
D) the same as the firm's demand curve.

Question

Exhibit 8-1 Quantity and total revenue data for a firm $$\begin{array} { | c | c | } 
\hline \text { Quantity } & \text { Total Revenue } \
\hline 0 & \$ 0 \
1 & 62 \
2 & 124 \
3 & 186 \
\hline
\end{array}$$
-In the perfectly competitive market, individual firms exert no effect on the market price. Therefore, the firm's marginal revenue curve is:
A) indeterminate.
B) an upward-sloping curve.
C) a downward-sloping curve.
D) the same as the firm's demand curve.

Quizplus · Accepted Answer

In a perfectly competitive market, the firm's marginal revenue is constant and equal to the market price, which is also the firm's demand curve.

Exhibit 8-1 Quantity and Total Revenue Data for a Firm