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n perfect competition, since the firm is a price taker, the _______ curve is a straight line:
- a)Marginal cost
- b)Total cost
- c)Total revenue
- d)Marginal revenue
Correct answer is option 'D'. Can you explain this answer?
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Most Upvoted Answer
n perfect competition, since the firm is a price taker, the _______ cu...
Explanation:
Perfect competition is a market structure where there are many buyers and sellers, and no single participant has control over the market price. In other words, the firm is a price taker and has to accept the prevailing market price to sell its products.
Marginal Revenue (MR) is the additional revenue that a firm earns by selling one additional unit of output. In perfect competition, since the firm is a price taker, the market price is equal to the marginal revenue. Therefore, the MR curve is a straight line.
The marginal cost (MC) curve represents the additional cost incurred by producing one additional unit of output. The total cost (TC) curve represents the total cost of production, including fixed and variable costs. The total revenue (TR) curve represents the total revenue earned from selling a given quantity of output.
In perfect competition, the firm maximizes its profit by producing at the output level where marginal revenue equals marginal cost. Since the MR curve is a straight line, the firm's profit-maximizing output level can be easily determined.
Conclusion:
In conclusion, the correct answer is option 'D' - Marginal revenue. In perfect competition, the firm is a price taker, and the MR curve is a straight line since the market price is equal to the marginal revenue.
Perfect competition is a market structure where there are many buyers and sellers, and no single participant has control over the market price. In other words, the firm is a price taker and has to accept the prevailing market price to sell its products.
Marginal Revenue (MR) is the additional revenue that a firm earns by selling one additional unit of output. In perfect competition, since the firm is a price taker, the market price is equal to the marginal revenue. Therefore, the MR curve is a straight line.
The marginal cost (MC) curve represents the additional cost incurred by producing one additional unit of output. The total cost (TC) curve represents the total cost of production, including fixed and variable costs. The total revenue (TR) curve represents the total revenue earned from selling a given quantity of output.
In perfect competition, the firm maximizes its profit by producing at the output level where marginal revenue equals marginal cost. Since the MR curve is a straight line, the firm's profit-maximizing output level can be easily determined.
Conclusion:
In conclusion, the correct answer is option 'D' - Marginal revenue. In perfect competition, the firm is a price taker, and the MR curve is a straight line since the market price is equal to the marginal revenue.
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Community Answer
n perfect competition, since the firm is a price taker, the _______ cu...
Yes because here AR=PRICE SO AR=MR so MR is constant.
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n perfect competition, since the firm is a price taker, the _______ curve is a straight line:a)Marginal costb)Total costc)Total revenued)Marginal revenueCorrect answer is option 'D'. Can you explain this answer?
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