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30 September, 06:14

when perfectly competitive firm X sells three units of product Z, its marginal revenue is $4.67. when it sells one hundred units, marginal revenue is $4.67. We can conclude that the price isA. DroppingB. $4.67C. Too highD. the price cannot be calculated with the information

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  1. 30 September, 08:28
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    B) $4.67

    Explanation:

    By definition marginal revenue is the revenue generated by the sale of one more unit of product Z.

    Marginal revenue = unit price

    Since firm X participates in a perfectly competitive market, it is a price taker, and since the marginal revenue is constant, we can assume that this is the equilibrium price of product Z.
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