For a perfectly competitive firm, marginal revenue is equal to the market price of the product. In a perfectly competitive market, firms are price takers and must accept the market price for their goods. As a result, the additional revenue generated from selling one more unit (marginal revenue) is equal to the price at which that unit is sold.
For a perfectly competitive firm, marginal revenue is equal to
variable cost
TR x FC
TR + VC
the market price of the product
1 answer
1 answer