In a perfectly competitive market industry,firm's prices are equal to

Question

​In a perfectly competitive market industry,firm's prices are equal to

Quizplus · Accepted Answer

In a perfectly competitive market, all firms sell the same product and they are price takers, meaning they have no control over the market price. Each firm faces a horizontal demand curve, so their marginal revenue is equal to the market price, and the average revenue is also equal to the market price, because the price remains the same regardless of the quantity sold by any individual firm. Therefore, in a perfectly competitive market, firm's prices are equal to both their average revenue and their marginal revenue.

​In a Perfectly Competitive Market Industry,firm's Prices Are Equal to

In a Perfectly Competitive Market Industry,firm's Prices Are Equal to