For firms in perfect competition,price is equal to marginal revenue at all levels of output.

Name: For firms in perfect competition,price is equal to marginal revenue at all levels of output.
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Question

Quizplus · Accepted Answer

In perfect competition, firms are price takers and can sell their output at the market price. As a result, the firm's marginal revenue curve is the same as the market price curve, which means that price is equal to marginal revenue at all levels of output. Therefore, the statement is true.

For Firms in Perfect Competition,price Is Equal to Marginal Revenue