If a firm sells each unit of its output at the same price, then:
A) price and average revenue are equal
B) price and marginal revenue are equal
C) price and total revenue are equal
D) both answers A and B are correct

Question

Quizplus · Accepted Answer

In a perfectly competitive market, price equals both average revenue and marginal revenue because each additional unit sold adds the same amount to total revenue as the price.

If a Firm Sells Each Unit of Its Output at the Same