Suppose that Joe sells pork in a purely competitive market. The market price of pork is $3 per pound. Joe's marginal revenue from selling the 12th pound of pork would be
A) $36.
B) $3.
C) 12 lb.
D) 1 lb.

Question

Quizplus · Accepted Answer

In a purely competitive market, the marginal revenue for each additional unit sold is equal to the market price. Therefore, Joe's marginal revenue from selling the 12th pound of pork is $3.

Suppose That Joe Sells Pork in a Purely Competitive Market