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In pure competition, the MR (marginal revenue) curve is horizontal because firms are price takers, meaning they must accept the market price determined by supply and demand. Since each additional unit sold at this market price does not affect the overall market price, the revenue gained from selling one more unit (marginal revenue) remains constant and equal to the market price. Thus, the MR curve is perfectly elastic, reflecting the firm's inability to influence prices.
What else can I help you with?
What is the distinctive feature of the demand curve of a firm in pure competition?
The demand curve would be perfectly elastic.
Which is the reason why there is no advertising by individual firms under pure competition?
Under pure competition, firms produce a homogeneous product, so there is no reason to advertise. Pure competition is also known as perfect competition.
What are 4 characteristics of of pure competition?
the industry's demand curve is perfectly elastic
What is the demand curve faced by a pure monopolist?
The demand curve faced by a pure monopolist is of downward sloping in shape.
What are five characteristics of pure competition?
I need an answer what are 5 characteristics of pure competition?
What is the distinctive feature of the demand curve of a firm in pure competition?
The demand curve would be perfectly elastic.
Which is the reason why there is no advertising by individual firms under pure competition?
Under pure competition, firms produce a homogeneous product, so there is no reason to advertise. Pure competition is also known as perfect competition.
What are 4 characteristics of of pure competition?
the industry's demand curve is perfectly elastic
What is the demand curve faced by a pure monopolist?
The demand curve faced by a pure monopolist is of downward sloping in shape.
What are five characteristics of pure competition?
I need an answer what are 5 characteristics of pure competition?
What is a Pure competition?
Firms are price takers, price is equal to marginal costs, demand is perfectly elastic, i.e. constant and horizontal, the firms makes zero Economics profits.
What are the four basic market models?
Pure competition, pure monopoly, monopolistic competition, and oligopoly.
What is an example of pure competition?
The textile industry is probably the closest example to pure competition on Earth.
What are the examples of pure competition?
The textile industry is probably the closest example to pure competition on Earth.
The nondiscriminating pure monopolist's demand curve is the industry demand curve.?
yes
What best states the main difference between a monopoly and pure competition?
A monopoly involves no competition at all while pure competition involves a high level of competition.
What best states the main difference between monopoly and pure competition?
A monopoly involves no competition at all while pure competition involves a high level of competition.
