If a firm in perfect competition sells 500 units of a product at $10 per unit, its marginal revenue per unit is $10.

Name: If a firm in perfect competition sells 500 units of a product at $10 per unit, its marginal revenue per unit is $10.
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Quizplus · Accepted Answer

In perfect competition, the firm is a price taker, meaning it has to sell its product at the prevailing market price. Therefore, the marginal revenue for each additional unit sold is equal to the market price, which is $10 in this case.

If a Firm in Perfect Competition Sells 500 Units of a Product