For a perfectly competitive firm, the price of its good is equal to the firm's marginal revenue because
A) information about price changes is hard to come by for small sellers.
B) price and marginal revenue are the same economic concepts.
C) individual perfectly competitive firms cannot influence the market price by changing their output.
D) the firm's total revenue cannot be changed by anything the firms can do.
E) there are only a small number of firms in the market.
C
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What will be an ideal response?
A market failure likely occurs when
A) the consumption of a good generates an effect on third parties. B) firm production lacks an externality on third parties. C) consumers are sovereign but firms are not sovereign. D) there is no much competition in a market.