Table 8.1

-Refer to Table 8.1. That the firm is perfectly competitive is evident from its:
A) increasing marginal cost.
B) increasing total cost.
C) zero economic profits.
D) constant marginal revenue.
E) absence of marginal values at Q = 0.

Question

Table 8.1
 
-Refer to Table 8.1. That the firm is perfectly competitive is evident from its:
A) increasing marginal cost. 
B) increasing total cost. 
C) zero economic profits. 
D) constant marginal revenue. 
E) absence of marginal values at Q = 0.

Quizplus · Accepted Answer

A perfectly competitive firm faces a constant price for its product, which translates into a constant marginal revenue (MR) equal to the price.

Table 8.1 -Refer to Table 8.1. That the Firm Is Perfectly Competitive