The relationship between the price that a perfectly competitive firm can charge buyers and the firm's marginal revenue is that the price is ________ marginal revenue over all output.
A) above
B) below
C) equal to
D) sometimes above and sometimes below

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the price a firm can charge is equal to its marginal revenue for all levels of output because the firm is a price taker and cannot influence the market price.

The Relationship Between the Price That a Perfectly Competitive Firm