If price is unchanging across the firm's entire production range, then for the firm selling bagels at $0.40 each,
A) P = MR = AR
B) MR = MC = AC
C) TR = TC = 0
D) TR - TC = 0
E) AC = MC = TC

Question

Quizplus · Accepted Answer

When price is constant, Price (P) equals both Marginal Revenue (MR) and Average Revenue (AR), because each additional unit sold adds the same amount to total revenue and the average revenue per unit is the price.

If Price Is Unchanging Across the Firm's Entire Production Range