Asked by
Patrick Lynch
on Dec 11, 2024
Verified
When a firm is operating in a price-taker market, marginal revenue will always equal
A) average total cost.
B) one minus the elasticity of the market demand curve.
C) total revenue.
D) price.
Price-taker Market
A market condition where individual sellers or buyers cannot influence the price of goods or services and must accept the prevailing market price.
Marginal Revenue
The additional income generated from selling one more unit of a good or service.
- Employ the ideas of marginal revenue and marginal cost in making decisions in markets characterized by price-taking behavior.
- Identify the impact of market price on the calculation of a corporation's financial gains and outlays.
Verified Answer
TL
Learning Objectives
- Employ the ideas of marginal revenue and marginal cost in making decisions in markets characterized by price-taking behavior.
- Identify the impact of market price on the calculation of a corporation's financial gains and outlays.