The MR = MC rule can be restated for a purely competitive seller as P = MC because
A)each additional unit of output adds exactly its price to total revenue.
B)the firm's average revenue curve is downsloping.
C)the market demand curve is downsloping.
D)the firm's marginal revenue and total revenue curves will coincide.

Question

Quizplus · Accepted Answer

In a purely competitive market, the price a firm receives for its product is constant, meaning each additional unit sold adds exactly its price to total revenue. This aligns with the MR = MC rule, where MR (marginal revenue) for a purely competitive firm is equal to the price (P) of the product, because the firm is a price taker in the market.

The MR = MC Rule Can Be Restated for a Purely