In a perfectly competitive resource market, the marginal resource cost of a resource equals the price of the resource.

Question

Quizplus · Accepted Answer

In a perfectly competitive resource market, there are many buyers and sellers and no individual buyer or seller can influence the price. As a result, the price of a resource is determined by the market and every buyer pays the same price. In such a market, the marginal resource cost of a resource is equal to the price of the resource, as the cost of obtaining an additional unit of the resource is the same as the price at which it is sold.

In a Perfectly Competitive Resource Market, the Marginal Resource Cost