For a purely competitive seller, price equals
A)average revenue.
B)marginal revenue.
C)total revenue divided by output.
D)all of these.

Question

Quizplus · Accepted Answer

In a purely competitive market, the price a seller can charge is determined by the market and is the same for each unit sold. Therefore, price equals average revenue (total revenue divided by the quantity sold), marginal revenue (the change in total revenue from selling one more unit), and is essentially the definition of price in this context, making all of these statements correct.

For a Purely Competitive Seller, Price Equals