The additional revenue taken in by a perfectly competitive firm once it lowers its price is its marginal revenue.

Name: The additional revenue taken in by a perfectly competitive firm once it lowers its price is its marginal revenue.
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Question

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In a perfectly competitive market, a firm is a price taker and cannot influence the market price. Therefore, marginal revenue equals the market price, and lowering the price does not increase revenue.

The Additional Revenue Taken in by a Perfectly Competitive Firm