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lutik1710 [3]
3 years ago
8

Why does demand equal marginal revenue for perfectly competitive firms

Mathematics
1 answer:
shepuryov [24]3 years ago
6 0
Specifically, price only equals marginal revenue in perfect competition. Price equals MR in perfect competition because your demand curve is horizontal. No matter how much you produce, it always sells at the same price. In other market structures, you can raise or lower prices.
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