total revenue is a straight line
price is greater than marginal revenue
price equals total revenue
price equals total cost
Answer is Wrong!
Answer is Right!
The correct answer is: C. price equals total revenue.
A perfectly competitive firm is a price taker, which means that it cannot influence the market price of its product. The firm’s demand
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curve is therefore perfectly elastic, and its marginal revenue curve is equal to the market price.
Total revenue is the total amount of money that a firm receives from selling its products. It is calculated by multiplying the price of the product by the quantity of the product sold. For a perfectly competitive firm, total revenue is equal to the market price times the quantity sold.
Price is the amount of money that a buyer pays for a unit of a good or service. It is determined by the interaction of supply and demand in the market. For a perfectly competitive firm, the price is determined by the market and is the same for all firms in the market.
Marginal revenue is the additional revenue that a firm earns from selling one additional unit of its product. It is calculated by taking the change in total revenue and dividing it by the change in quantity sold. For a perfectly competitive firm, marginal revenue is equal to the price.
Therefore, for a perfectly competitive firm, price equals total revenue.