Marginal revenue of a firm is constant throughout under:
A)Perfect competition
B)Monopolistic competition
C)Oligopoly
D)All the above

Question

Quizplus · Accepted Answer

Under perfect competition, a firm faces a perfectly elastic demand curve, meaning the price remains constant regardless of the quantity sold. Therefore, the marginal revenue, which is the additional revenue from selling one more unit, remains constant and equal to the price.

Marginal Revenue of a Firm Is Constant Throughout Under