In price-taker markets, individual firms have no control over price. Therefore, the firm's marginal revenue curve is
A) a downward-sloping curve.
B) indeterminate.
C) constant at the market price of the product.
D) precisely the same as the firm's total revenue curve.

Question

Quizplus · Accepted Answer

In a price-taker market, firms are price takers, meaning they sell their product at the market price. Therefore, the marginal revenue, which is the additional revenue from selling one more unit, is constant and equal to the market price.

In Price-Taker Markets, Individual Firms Have No Control Over Price