In pure competition, each extra unit of output that a firm sells will yield a marginal revenue that is
A) equal to the price.
B) less than the price.
C) greater than the price.
D) equal to the average cost.

Question

Quizplus · Accepted Answer

In pure competition, a firm is a price taker and has no control over the price, and therefore the marginal revenue will be equal to the price.

In Pure Competition, Each Extra Unit of Output That a Firm