Ask Question
BusinessBusiness
6 September, 02:27

For a perfectly competitive firm, marginal revenue:

(A) is equal to the market demand curve.

(B) will increase if the firm increases its sales volume.

(C) will decrease if the firm increases its sales volume.

(D) is equal to the market price.

+4
Answers (1)
  1. 6 September, 04:21
    0
    Answer: Option (D) is correct.

    Explanation:

    Correct option: is equal to the market price.

    Marginal revenue is the change in the total revenue which arises by selling an additional unit of the commodity.

    In a perfectly competitive market, there are large number of buyers and sellers in a market. Single buyer and single seller won't be able to affect the price of the market.

    Price of the product will be determined by the market forces. In this market, individual firms are generally facing a horizontal demand curve where price is equal to the marginal revenue. Because demand curve is parallel to x-axis and it is perfectly elastic, so there will be no changes in prices if there is a change in a demand.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “For a perfectly competitive firm, marginal revenue: (A) is equal to the market demand curve. (B) will increase if the firm increases its ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Why do consumers sometimes take a while to respond to price changes? a. price changes do not affect consumers. b. consumers cannot find acceptable substitutes immediately. c. consumers need time to decide whether the good is a luxury or a necessity.
Answers (1)
Rapidly growing companies often buy increasing amounts of merchandise from suppliers on credit, and then sell the goods to their customers on credit.
Answers (1)
During the month, Gates Labs Co. has a substantial number of transactions affecting each of the following accounts.
Answers (1)
The goal of CPFR is to A. ensure product innovation. B. determine which model needs to be used to predict future events. C. create significantly more accurate information that can power the supply chain. D. create good relations with suppliers.
Answers (1)
Harrison Enterprises currently produces 8,000 units of part B13. Current unit costs for part B13 are as follows: Direct materials $12 Direct labor 9 Factory rent 7 Administrative costs 10 General factory overhead (allocated) 7 Total $45 If Harrison
Answers (1)
New Questions in Business
A (n) is the issuer's written promise to pay an amount equaling the par value. The par value is paid at a specified future date. Most often, the issuer is required to make semiannual interest payments.
Answers (1)
The primary goal of the Consumer Financial Protection Bureau is: A To monitor your credit report and ensure your identity and other sensitive data has not been compromised. B To protect against abusive or deceptive debt collection purposes.
Answers (1)
Jake Skinner purchases a big screen TV on credit and will repay the loan with one payment at the end of 90 days. What type of credit did Jake use?
Answers (1)
Which most likely results from producers engaging in specialization? Producers reduce their costs. Producers increase their market share. Producers decrease the materials needed for production. Producers always offer more competitive pricing.
Answers (1)
The workers at State Hospital, a public sector employer, and Acme Inc, a private employer, are subject to speech censorship and arbitrary job termination. Constitutional issues are present only for the State Hospital workers. TrueFalse
Answers (1)
Home » Business » For a perfectly competitive firm, marginal revenue: (A) is equal to the market demand curve. (B) will increase if the firm increases its sales volume. (C) will decrease if the firm increases its sales volume. (D) is equal to the market price.
Sign Up Forgot Password?