Under perfect competition, which of the following are the same (equal) at all levels of output?
A) Price and marginal cost.
B) Price and marginal revenue.
C) Marginal cost and marginal revenue.
D) All of these.

Question

Quizplus · Accepted Answer

Under perfect competition, price and marginal revenue are the same because firms are price-takers and can sell as much output as they want at the market price. However, marginal cost may not be equal to price or marginal revenue unless the industry is in long-run equilibrium. Thus, option A and C are incorrect. Option D is incorrect because not all three are the same in perfect competition.

Under Perfect Competition, Which of the Following Are the Same