For a firm in a perfectly competitive industry: a) marginal revenue and product price are equal...
Question:
For a firm in a perfectly competitive industry:
a) marginal revenue and product price are equal at every level of output.
b) the price elasticity of demand is zero.
c) the demand curve is unitary elastic throughout.
d) more output can be sold only if the firm unilaterally lowers its product price.
Perfectly Competitive Industry:
Perfectly Competitive Industry is one of the types of industry which deals within the homogeneous or identical products in the market. Further, this industry has the characteristics of low-entry and low-exit barriers, a large number of buyers and sellers, a small share of each buyer, and a seller in determining market price, et cetera.
Answer and Explanation: 1
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View this answer- The correct option is a. Marginal revenue and product price are equal at every level of output.
Since there is a large number of sellers and buyers in...
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Perfect Competition: Definition, Characteristics & Examples
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Chapter 3 / Lesson 62
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