It can be substituted because the industry would become purely competitive.
Because in Pure Competition, Demand equals Price, and Price equals Marginal Revenue;hence, Demand equals Marginal revenue.
price = marginal revenue. marginal revenue > average revenue. price > marginal cost. total revenue > marginal co
Is constant regardless of the quantity demanded.
The input's price equals its marginal revenue product
Average Revenue (AR) is equals to Marginal Revenue (MR) in Perfect competition (PC) not imperfect competition. AR can be derived from the formula= Total revenue(TR) / Quantity. Since TR = Price x Quantity, the formula now will be Price x Quantity/ Quantity and naturally, AR equals to Price. Marginal Revenue can be measured by the formula= Change in total revenue/ Change in quantity (which is 1). Since the change in total revenue will be equals to the price of the product, MR in this case will be the Price of the product. From here we can see that Price = MR = AR = Demand.
Because in Pure Competition, Demand equals Price, and Price equals Marginal Revenue;hence, Demand equals Marginal revenue.
price = marginal revenue. marginal revenue > average revenue. price > marginal cost. total revenue > marginal co
Is constant regardless of the quantity demanded.
The input's price equals its marginal revenue product
Average Revenue (AR) is equals to Marginal Revenue (MR) in Perfect competition (PC) not imperfect competition. AR can be derived from the formula= Total revenue(TR) / Quantity. Since TR = Price x Quantity, the formula now will be Price x Quantity/ Quantity and naturally, AR equals to Price. Marginal Revenue can be measured by the formula= Change in total revenue/ Change in quantity (which is 1). Since the change in total revenue will be equals to the price of the product, MR in this case will be the Price of the product. From here we can see that Price = MR = AR = Demand.
Marginal Cost = Marginal Revenue, or the derivative of the Total Revenue, which is price x quantity.
revenue equals the price of each input
Price elasticity of demand is a way to determine marginal revenue. Optimal revenue and, more importantly, optimal profit will occur to the point when marginal revenue = marginal cost, or the price elasticity of demand < 1.
When Demand is perfectly elastic, Marginal Revenue is identical with price.
no,marginal revenue cannot be ever negative.this condition is only applies when price effect is on the revenue is greater than output effect
marginal revenue always lies behind the demand curve,and when demand increases marginal revenue also increases.demand curve is used to determine price of a commodity.
Marginal Revenue = Marginal Cost; mark-up price to the demand curve.