Asked by Kericia Halliday on Jul 16, 2024
Verified
A competitive firm sells its output for $30 per unit. Is the firm's marginal revenue less than, equal to, or greater than $30?
Marginal Revenue
The additional income earned from selling one more unit of a product or service.
- Establish profit or loss through careful examination of total revenue, average revenue, and marginal revenue parameters.
- Understand the impact of market structures on the pricing and profit-maximizing strategies of firms.
Verified Answer
IR
Isaac Raja SekarJul 18, 2024
Final Answer :
For a competitive firm, price is equal to marginal revenue for all levels of output. Therefore, the firm's marginal revenue is equal to $30.
Learning Objectives
- Establish profit or loss through careful examination of total revenue, average revenue, and marginal revenue parameters.
- Understand the impact of market structures on the pricing and profit-maximizing strategies of firms.
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