When a Firm Is Operating in a Perfectly Competitive Market

question 57

Multiple Choice

When a firm is operating in a perfectly competitive market, which of the following best describes marginal revenue?

• A) It is equal to zero when the market is in long-run equilibrium.
• B) It is equal to price.
• C) It is equal to the change in output divided by the change in total revenue.
• D) It is always less than price.

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