The demand curve of the perfectly competitive firm is equal to its marginal revenue curve.

Name: The demand curve of the perfectly competitive firm is equal to its marginal revenue curve.
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Question

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In a perfectly competitive market, the demand curve facing the firm is perfectly elastic, which means that the price is the same regardless of the quantity produced. So, the marginal revenue curve and demand curve are the same, and both show the same price for each unit sold.

The Demand Curve of the Perfectly Competitive Firm Is Equal