For a price-taking firm,marginal revenue

Name: For a price-taking firm,marginal revenue
Brand: Quizplus
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Question

Quizplus · Accepted Answer

For a price-taking firm, marginal revenue is equal to price at any level of output (Option C) and is the addition to total revenue from producing one more unit of output (Option A). Marginal revenue does not decrease as the firm produces more output, as the firm has no market power to affect the market price (Option B); therefore, options A and C are the correct choices, and the best answer is E, "both a and c."

For a Price-Taking Firm,marginal Revenue