In a perfectly competitive market, marginal revenue is ___ because each firm has ___.

Question

BlackTom AI · Accepted Answer

Marginal revenue equals the market price because firms in perfect competition are price takers with no market power.

1. Relevant knowledge points and concepts
- Perfect competition: many firms, identical products, free entry/exit, and each firm is small relative to the market.
- Price taker: an individual firm cannot influence the market price; it accepts (takes) the exogenously given market price.
- Total revenue (TR) and marginal revenue (MR): TR = P × q for a price-taking firm; MR = d(TR)/dq.

2. Step-by-step reasoning
- For a competitive firm the market price P is constant with respect to the firm’s output q (the firm’s output does not change P).
- TR(q) = P · q because each unit sells at the same price P.
- Differentiate: MR(q) = d(TR)/dq.

3. Calculations and intermediate steps
- TR = Pq
- MR = d(TR)/dq = d(Pq)/dq = P + q·dP/dq
- Since P is constant for the individual firm, dP/dq = 0, so MR = P + q·0 = P

4. Why the correct answer is correct
- Because the derivative of total revenue with respect to quantity equals the constant price, marginal revenue equals the exogenously given price. “No market power” explains why the firm cannot change price—price is set by the market, not by the individual firm.

5. Why other possible options would be incorrect
- MR < P: This holds for a monopolist or any firm facing a downward-sloping demand curve (selling more requires lowering price), so it is not true under perfect competition.
- MR > P: Implausible—selling one more unit cannot produce more marginal revenue than the unit price when price is constant.
- MR = MC: This is a profit-maximization condition (firms set quantity where MR = MC), not an identity for MR in perfect competition.

6. Conclusion
Marginal revenue is equal to an exogenously given price because each firm has no market power. This matches the provided answer.

In a perfectly competitive market, marginal revenue is _ because each firm has _.单项选择题

类似问题

The marginal-revenue curve for a monopoly firm is depicted by curve:[Fill in the blank]

Which of the following statements is CORRECT?

The marginal revenue of the fifth item sold is ...... (Do not include the $ sign in your answer)

The marginal revenue of the third item sold is ...... (Do not include the $ sign in your answer)

Marginal revenue is the change in

The table below captures the relevant portion of a demand schedule facing a monopolist. A Demand Schedule Facing a Monopolist Price Quantity $10 1 $9 2 $8 3 $7 4 $6 5 Refer to the table above. What is the marginal revenue associated with selling the 3rd unit of output?

49. In which of the following market models do demand and marginal revenue not diverge? A. pure competition B. monopolistic competition C. pure monopoly D. oligopoly

65. Refer to the diagram, which pertains to a purely competitive firm. Curve C represents A. total revenue and marginal revenue. B. marginal revenue only. C. total revenue and average revenue. D. average revenue and marginal revenue.

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单

In a perfectly competitive market, marginal revenue is ___ because each firm has ___.单项选择题