The marginal revenue curve of a purely competitive firm:
A. lies below the firm's demand curve.
B. is downsloping because price must be reduced to sell more output.
C. is horizontal at the market price.
D. has all of these characteristics.
Answer: C
Economics
You might also like to view...
The construct of a representative firm is most helpful in describing the behavior of all of the firms in the economy when
A) there are constant returns to scale. B) there are increasing returns to scale. C) there are decreasing returns to scale. D) the marginal product of labor is increasing in the amount of labor input.
Economics
A perfectly competitive firm's marginal revenue
a. curve is a vertical line b. equals price c. rises at a constant rate d. rises at an increasing rate e. falls at a constant rate
Economics