Scenario 9.2
Consider a publicly held firm (one whose stock shares are traded on the stock exchange) that earned revenue worth $350 million and incurred land, labor, and debt costs worth $320 million. The stockholders who have invested a total of $100 million in this firm could have earned 10 percent return on other comparable investments.
-For which of the following types of firm does the average revenue curve coincide with the marginal revenue curve?

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the firm is a price taker and faces a horizontal demand curve, which is also its marginal revenue curve. Therefore, the average revenue curve coincides with its marginal revenue curve.

Scenario 9.2 Consider a Publicly Held Firm (One Whose Stock Shares Are