If a firm in a purely competitive industry is confronted with an equilibrium price of $5, its marginal revenue
A) may be either greater or less than $5.
B) will also be $5.
C) will be less than $5.
D) will be greater than $5.

Question

Quizplus · Accepted Answer

In a purely competitive market, the marginal revenue of a firm is equal to the price of the good. Therefore, if the equilibrium price is $5, the marginal revenue of the firm will also be $5.

If a Firm in a Purely Competitive Industry Is Confronted