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The marginal revenue curve of a purely competitive firm:

A. lies below the firm's demand curve.

B. is downsloping because the price must be reduced to sell more output.

C. is horizontal at the market price.

D. has all of these characteristics.

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Divya Singh
Divya SinghLv10
15 Jan 2021

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Related questions

The marginal revenue curve faced by a perfectly competitive firm
a. lies below the firm's demand curve
b. is downward sloping, because price must be reduced to sell more output
c. is horizontal at the market price
d. has all of these characteristics

The marginal revenue curve faced by a perfectly competitive firm:

-is horizontal at the market price.

-is downward sloping, because price must be reduced to sell more output.

-lies below the firm's demand curve.

-has all of these characteristics.

The MR = MC rule can be restated for a purely competitive seller as P = MC because:

A. Each additional unit of output adds exactly its price to total revenue.

B. The firm’s average revenue curve is downsloping.

C. The market demand curve is downsloping.

D. The firm’s marginal revenue and total revenue curves will coincide.

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