When a firm is operating in a price-taker market, marginal revenue is
A) equal to price.
B) always less than price.
C) equal to zero when the market is in long-run equilibrium.
D) equal to the change in output divided by the change in total revenue.

Question

Quizplus · Accepted Answer

In a price-taker market, a firm can sell as much as it wants at the market price, so marginal revenue is equal to the price.

When a Firm Is Operating in a Price-Taker Market, Marginal