If a business in a perfectly competitive industry is confronted with an equilibrium price of $5, its marginal revenue:
Question
Solution 1
In a perfectly competitive market, the equilibrium price is equal to the marginal revenue (MR) for firms in that industry. This is because each firm is a price taker, meaning that they can sell as much quantity as they want at the market price, but they cannot influence the price itself.
Explan
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI
Similar Questions
If the market price is $40 in a perfectly competitive market, what is the marginal revenue from selling the fifth unit?
At the equilibrium for a perfectly competitive market, the price will _____ the marginal cost for each business.Multiple choice question.equallie belowexceed
In perfect competition, price is equal to marginal revenue. Group of answer choicesTrueFalse
Because the marginal revenue faced by the firm is equal to price, revenue is also equal to price.
profit creates an incentive for other perfectly competitive firms to enter the market. (Use one word for the blank.)
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.