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.
Answer: A
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Consider a market with just one firm. The demand in the market is p = 18 – Q and the firm has a linear cost function C(Q) = 2Q
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