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Taya2010 [7]
3 years ago
10

When perfectly competitive firm X sells three units of product Z, its marginal revenue is $4.67. When it sells one hundred units

, marginal revenue is $4.67. We can conclude that the price is: ____
(A) $4.67.
(B) dropping.
(C) The price cannot be calculated with the information given.
(D) too high.
Business
1 answer:
Sedaia [141]3 years ago
8 0

Answer:

<u>A) $4.67</u>

Explanation:

In a perfectly competitive market, marginal revenue always is equal to price.  Also, the price is not determined by the firms, it is given by the market because producers doesn´t have any power of decision in this matter.

Due to that, the price is constant, independent the quantity sold.

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