If a firm is operating in a perfectly competitive market in which the market price equals $12,then its

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Quizplus · Accepted Answer

In a perfectly competitive market, each firm is a price taker and has no market power to influence the market price. Thus, the firm can sell all of its output at the market price of $12. Therefore, the marginal revenue for the firm is also $12, as it can only sell more units if it lowers the price, which would result in lower revenue per unit.

If a Firm Is Operating in a Perfectly Competitive Market