Suppose a firm in a competitive market produces and sells 8 units of output and has a marginal revenue of $8. What would be the firm's marginal revenue if it instead produced and sold 4 units of output?
A)$2
B)$8
C)$32
D)$64

Question

Quizplus · Accepted Answer

In a competitive market, marginal revenue is equal to the market price. Therefore, regardless of the level of output, the marginal revenue will remain constant at $8.

Suppose a Firm in a Competitive Market Produces and Sells