If a firm in a perfectly competitive market facing a market price of $7 decides to increase its production from 4,000 to 12,000 units, the firm's marginal revenue will:

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the marginal revenue a firm receives from selling an additional unit of output is equal to the market price, which remains constant regardless of the quantity produced. Therefore, if the market price is $7, the marginal revenue for each additional unit sold remains $7, regardless of the quantity produced.

If a Firm in a Perfectly Competitive Market Facing a Market