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Is marginal revenue equal to price in a perfectly competitive market?
In a perfectly competitive market, marginal revenue is equal to price.
Is the price equal to marginal revenue in a perfectly competitive market?
In a perfectly competitive market, the price is equal to the marginal revenue.
Does marginal revenue equal price in a perfectly competitive market?
Yes, in a perfectly competitive market, marginal revenue equals price.
What is the relationship between price and marginal revenue in a competitive market?
In a competitive market, the relationship between price and marginal revenue is that they are equal. This means that the price of a good or service is equal to the marginal revenue generated from selling one more unit of that good or service.
Is it true that in a perfectly competitive market, the marginal revenue is equal to the price of the good for each unit sold?
Yes, in a perfectly competitive market, the marginal revenue is equal to the price of the good for each unit sold.
Is marginal revenue equal to price in a perfectly competitive market?
In a perfectly competitive market, marginal revenue is equal to price.
Is the price equal to marginal revenue in a perfectly competitive market?
In a perfectly competitive market, the price is equal to the marginal revenue.
Does marginal revenue equal price in a perfectly competitive market?
Yes, in a perfectly competitive market, marginal revenue equals price.
What is the relationship between price and marginal revenue in a competitive market?
In a competitive market, the relationship between price and marginal revenue is that they are equal. This means that the price of a good or service is equal to the marginal revenue generated from selling one more unit of that good or service.
Is it true that in a perfectly competitive market, the marginal revenue is equal to the price of the good for each unit sold?
Yes, in a perfectly competitive market, the marginal revenue is equal to the price of the good for each unit sold.
How can one determine the method for finding marginal revenue in a perfectly competitive market?
To determine the method for finding marginal revenue in a perfectly competitive market, one can calculate the change in total revenue when one additional unit of output is sold. This can be done by taking the derivative of the total revenue function with respect to quantity. In a perfectly competitive market, marginal revenue is equal to the market price.
Is marginal revenue equal to price in economics?
In economics, marginal revenue is not always equal to price. Marginal revenue is the additional revenue gained from selling one more unit of a product, while price is the amount customers pay for that product. In competitive markets, where firms are price takers, marginal revenue is equal to price. However, in markets with market power, such as monopolies, marginal revenue is less than price.
Why doesn't demand equal marginal revenue in a monopoly and how come this discrepancy occurs?
In a monopoly, demand does not equal marginal revenue because the monopoly firm has the power to set prices higher than the marginal revenue. This discrepancy occurs because the monopoly has control over the market and can influence prices to maximize profits, unlike in a competitive market where prices are determined by supply and demand forces.
The additional income from selling one more unit of a good sometimes equal to priceis?
The additional income from selling one more unit of a good is referred to as marginal revenue. In a perfectly competitive market, this marginal revenue is equal to the price of the good because firms can sell as many units as they want at the market price without affecting it. However, in monopolistic or imperfectly competitive markets, marginal revenue can be less than the price due to the need to lower the price to sell additional units. Thus, while marginal revenue is often equal to price, this is not universally true across all market structures.
Are marginal revenue average revenue and price are all equal for a monopolist?
No, in a monopolistic market, marginal revenue is less than average revenue and price. This is because the monopolist must lower the price in order to sell more units, leading to a decline in revenue per unit.
What is The additional income from selling one more unit of a good sometimes equal to price is?
The additional income from selling one more unit of a good is called marginal revenue. In a perfectly competitive market, the marginal revenue is equal to the price of the good since firms are price takers and can sell any quantity at the market price. However, in monopolistic or imperfectly competitive markets, marginal revenue is generally less than the price due to the downward-sloping demand curve, which requires lowering the price to sell additional units.
The equality of marginal revenue and marginal cost is essential for profit maximization in all market structures because if?
Marginal revenue and marginal cost are equal, any other output level will result in reduced profit.
