The reason price equals marginal revenue in a perfectly competitive market is that
A) the law prohibits marginal revenue from diverging from market price.
B) marginal revenue is always equal to marginal cost.
C) since price is constant, the added revenue from selling one more unit is equal to the price.
D) firms adjust output to ensure that the market maintains a steady price.
Correct Answer:
Verified
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A) marginal cost
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A) MC
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