Because the demand for a perfectly competitive firm's product is perfectly elastic, marginal revenue is equal to

Name: Because the demand for a perfectly competitive firm's product is perfectly elastic, marginal revenue is equal to
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In a perfectly competitive market, the demand curve is perfectly elastic, meaning that the firm can sell any quantity at the market price. Therefore, marginal revenue, which is the additional revenue from selling one more unit, is equal to the price of the product.

Because the Demand for a Perfectly Competitive Firm's Product Is