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Marginal Revenue Is Equal to Price for a Perfectly Competitive

Question 48

Multiple Choice

Marginal revenue is equal to price for a perfectly competitive firm because


A) total revenue increases by the price of the good when an additional unit is sold.
B) total revenue increases by less than the price of the good when an additional unit is sold.
C) firms need to lower price to increase the quantity sold.
D) firms can increase price and still increase the quantity sold.

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