For perfectly competitive firms,price
A)Is greater than marginal revenue.
B)Is equal to marginal revenue.
C)Is less than marginal revenue.
D)And marginal revenue are not related.

Question

Quizplus · Accepted Answer

In perfectly competitive markets, firms are price takers and cannot influence the market price. Therefore, the demand curve they face is perfectly elastic and they can only sell at the market price. As a result, the marginal revenue curve and the demand curve are the same. Therefore, the price is equal to the marginal revenue for perfectly competitive firms.

For Perfectly Competitive Firms,price