Asked by
Robert Cabrera
on Oct 27, 2024
Verified
Marginal revenue:
A) is the slope of the average revenue curve.
B) equals the market price in perfect competition.
C) is the change in quantity divided by the change in total revenue.
D) is the price divided by the change in quantity.
Marginal Revenue
The increase in income resulting from the sale of an extra unit of a good or service.
Average Revenue Curve
A graphical representation showing how the average revenue per unit sold varies with the quantity sold.
Perfect Competition
A market structure characterized by many firms offering identical products, free entry and exit of firms, and full information availability, leading to efficient outcomes.
- Absorb the understanding that in perfect competition, the equivalence of price and marginal revenue is a fundamental principle.
Verified Answer
AP
Learning Objectives
- Absorb the understanding that in perfect competition, the equivalence of price and marginal revenue is a fundamental principle.