QuestionJuly 26, 2025

6. The price charged by a firm in a perfectly competitive market always equals its: total revenue. marginal cost. marginal revenue. average cost.

6. The price charged by a firm in a perfectly competitive market always equals its: total revenue. marginal cost. marginal revenue. average cost.
6. The price charged by a firm in a perfectly
competitive market always equals its:
total revenue.
marginal cost.
marginal revenue.
average cost.

Solution
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Answer

marginal cost. Explanation 1. Identify the characteristic of a perfectly competitive market In a perfectly competitive market, firms are price takers. 2. Relate price to marginal concepts The price equals both marginal cost and marginal revenue because firms maximize profit where **marginal cost (MC) = marginal revenue (MR)**.

Explanation

1. Identify the characteristic of a perfectly competitive market<br /> In a perfectly competitive market, firms are price takers.<br /><br />2. Relate price to marginal concepts<br /> The price equals both marginal cost and marginal revenue because firms maximize profit where **marginal cost (MC) = marginal revenue (MR)**.
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