The condition of P = MR in a perfectly competitive market.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 23, Problem 1VQP

To determine

The condition of P = MR in a perfectly competitive market.

Expert Solution & Answer

Explanation of Solution

Price is always equal to the marginal revenue of a firm in a perfectly competitive market. This is because of the charging of uniform price in the perfectly competitive market. And there is no change in price as additional quantity of output sale. It is expressed in Table 1 as follows:

Table 1

Price	Quantity	Total Revenue	Marginal Revenue
$25	1	25	25
$25	2	50	25
$25	3	75	25

Table 1 represents that in a perfectly competitive market, the price is equal to marginal revenue.

Economics Concept Introduction

Marginal revenue: Marginal revenue is the addition to the total revenue that results from selling an extra unit of output.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

The projects under the 'Build, Build, Build' program: how these projects improve connectivity and ease of doing business in the Philippines?

how utillity relate to microeconomics ?

how opportunity coast relate to Economics ?

Answer 2

Question

Chapter 23, Problem 1VQP

To determine

The condition of P = MR in a perfectly competitive market.

Expert Solution & Answer

Explanation of Solution

Price is always equal to the marginal revenue of a firm in a perfectly competitive market. This is because of the charging of uniform price in the perfectly competitive market. And there is no change in price as additional quantity of output sale. It is expressed in Table 1 as follows:

Table 1

Price	Quantity	Total Revenue	Marginal Revenue
$25	1	25	25
$25	2	50	25
$25	3	75	25

Table 1 represents that in a perfectly competitive market, the price is equal to marginal revenue.

Economics Concept Introduction

Marginal revenue: Marginal revenue is the addition to the total revenue that results from selling an extra unit of output.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 23, Problem 1VQP

To determine

The condition of P = MR in a perfectly competitive market.

Expert Solution & Answer

Explanation of Solution

Price is always equal to the marginal revenue of a firm in a perfectly competitive market. This is because of the charging of uniform price in the perfectly competitive market. And there is no change in price as additional quantity of output sale. It is expressed in Table 1 as follows:

Table 1

Price	Quantity	Total Revenue	Marginal Revenue
$25	1	25	25
$25	2	50	25
$25	3	75	25

Table 1 represents that in a perfectly competitive market, the price is equal to marginal revenue.

Economics Concept Introduction

Marginal revenue: Marginal revenue is the addition to the total revenue that results from selling an extra unit of output.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 23, Problem 1VQP

To determine

The condition of P = MR in a perfectly competitive market.

Expert Solution & Answer

Explanation of Solution

Price is always equal to the marginal revenue of a firm in a perfectly competitive market. This is because of the charging of uniform price in the perfectly competitive market. And there is no change in price as additional quantity of output sale. It is expressed in Table 1 as follows:

Table 1

Price	Quantity	Total Revenue	Marginal Revenue
$25	1	25	25
$25	2	50	25
$25	3	75	25

Table 1 represents that in a perfectly competitive market, the price is equal to marginal revenue.

Economics Concept Introduction

Marginal revenue: Marginal revenue is the addition to the total revenue that results from selling an extra unit of output.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 23, Problem 1VQP

To determine

The condition of P = MR in a perfectly competitive market.

Expert Solution & Answer

Explanation of Solution

Price is always equal to the marginal revenue of a firm in a perfectly competitive market. This is because of the charging of uniform price in the perfectly competitive market. And there is no change in price as additional quantity of output sale. It is expressed in Table 1 as follows:

Table 1

Price	Quantity	Total Revenue	Marginal Revenue
$25	1	25	25
$25	2	50	25
$25	3	75	25

Table 1 represents that in a perfectly competitive market, the price is equal to marginal revenue.

Economics Concept Introduction

Marginal revenue: Marginal revenue is the addition to the total revenue that results from selling an extra unit of output.

Answer 6

Chapter 23, Problem 1VQP

To determine

The condition of P = MR in a perfectly competitive market.

Expert Solution & Answer

Explanation of Solution

Price is always equal to the marginal revenue of a firm in a perfectly competitive market. This is because of the charging of uniform price in the perfectly competitive market. And there is no change in price as additional quantity of output sale. It is expressed in Table 1 as follows:

Table 1

Price	Quantity	Total Revenue	Marginal Revenue
$25	1	25	25
$25	2	50	25
$25	3	75	25

Table 1 represents that in a perfectly competitive market, the price is equal to marginal revenue.

Economics Concept Introduction

Marginal revenue: Marginal revenue is the addition to the total revenue that results from selling an extra unit of output.

Answer 7

Chapter 23, Problem 1VQP

To determine

The condition of P = MR in a perfectly competitive market.

Answer 8

Expert Solution & Answer

Explanation of Solution

Price is always equal to the marginal revenue of a firm in a perfectly competitive market. This is because of the charging of uniform price in the perfectly competitive market. And there is no change in price as additional quantity of output sale. It is expressed in Table 1 as follows:

Table 1