Asked by
Aaftab Singh
on Nov 04, 2024
Verified
In perfect competition, a firm's ________ curve is horizontal.
A) marginal cost
B) total revenue
C) marginal revenue
D) total cost.
Marginal Revenue Curve
A graph illustrating the additional revenue a firm gains when it sells one additional unit of a product.
Perfect Competition
Perfect competition describes a market structure where competition is at its greatest possible level, with numerous firms, no barriers to entry, and price taking behavior.
- Become familiar with the interplay between marginal cost, marginal revenue, average total cost, and the pursuit of profit optimization.
- Identify the characteristics that distinguish perfectly competitive markets from other market structures.
Verified Answer
SG
Learning Objectives
- Become familiar with the interplay between marginal cost, marginal revenue, average total cost, and the pursuit of profit optimization.
- Identify the characteristics that distinguish perfectly competitive markets from other market structures.
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