If a firm in a perfectly competitive market faces a market price of $7,and it decides to increase its production from 4,000 to 12,000 units,the firm's marginal revenue:

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Quizplus · Accepted Answer

In a perfectly competitive market, the firm is a price taker and cannot influence the market price. Therefore, the firm's marginal revenue remains constant regardless of the quantity of output produced. In this case, marginal revenue would remain at $7 per unit, regardless of whether the firm produces 4,000 or 12,000 units.

If a Firm in a Perfectly Competitive Market Faces a Market