In answering the question, assume a graph in which dollars are measured on the vertical axis and output on the horizontal axis.For a purely competitive firm, marginal revenue graphs as a
A)straight, upsloping line.
B)straight line, parallel to the vertical axis.
C)straight line, parallel to the horizontal axis.
D)straight, downsloping line.

Question

Quizplus · Accepted Answer

In a purely competitive market, a firm's marginal revenue is constant and equal to the market price, hence it graphs as a straight line parallel to the horizontal axis, reflecting that each additional unit of output sold brings in the same amount of revenue.

In Answering the Question, Assume a Graph in Which Dollars