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)$3.
B)$36.
C)12 lbs.
D)$12.

Question

Quizplus · Accepted Answer

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

Suppose That Joe Sells Pork in a Purely Competitive Market