The figure given below shows the aggregate demand and supply curves of a perfectly competitive market.Figure 10.7

-Under perfect competition, the per unit revenue of a firm is equal to its marginal revenue.

Question

The figure given below shows the aggregate demand and supply curves of a perfectly competitive market.Figure 10.7
 
-Under perfect competition, the per unit revenue of a firm is equal to its marginal revenue.

Quizplus · Accepted Answer

Under perfect competition, a firm is a price taker, meaning it cannot influence the market price. Therefore, the firm's per unit revenue is equal to the market price, and since the market price remains constant, the firm's marginal revenue is also equal to the market price, making the given statement true.

The Figure Given Below Shows the Aggregate Demand and Supply