Under perfect competition, which of the following are equal at all levels of output?

Question

Quizplus · Accepted Answer

Under perfect competition, firms are price takers and have no market power to influence prices. Therefore, the price is determined by the market demand and supply forces. Since a firm's marginal revenue is equal to the market price, both price and marginal revenue are equal at all levels of output. However, marginal cost and average total cost may not be equal in the short run due to the existence of fixed costs.

Under Perfect Competition, Which of the Following Are Equal at All