For the perfectly competitive firm, the demand curve and the marginal revenue curve are one and the same.

Question

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In a perfectly competitive market, each firm faces a perfectly elastic demand curve at the market price, meaning the price does not change with the quantity of goods sold. Therefore, the marginal revenue, which is the additional revenue from selling one more unit, remains constant and equal to the price, making the demand curve and the marginal revenue curve identical for the firm.

For the Perfectly Competitive Firm, the Demand Curve and the Marginal