Price equals marginal revenue for a competitive firm because: Select one: a. marginal cost is constant. b. total revenue is constant. c. the price does not change when the firm changes output. d. the production of marginal units affects the value of other units.
Added by Victor A.
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Marginal revenue is the additional revenue a firm earns by selling one more unit of output. In a competitive market, the firm is a price taker, meaning it has no control over the market price. The market price is determined by the intersection of the supply and Show more…
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