Why are marginal revenue and price equal for competitive firms? Price equals marginal revenue because the demand curve is upward sloping. price must decrease as quantity increases. price is constant for all levels of output. price is the same as total revenue.
Why are marginal revenue and price equal for competitive firms? Price equals marginal revenue because the demand curve is upward sloping. price must decrease as quantity increases. price is constant for all levels of output. price is the same as total revenue.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter9: Market Structure And Long-run Equilibrium
Section: Chapter Questions
Problem 6MC
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Why are marginal revenue and price equal for competitive firms?
Price equals marginal revenue because
the demand curve is upward sloping.
price must decrease as quantity increases.
price is constant for all levels of output.
price is the same as total revenue.
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