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andriy [413]
3 years ago
7

Which of the following is not true for a firm in perfect competition? Profit equals total revenue minus total cost. Average reve

nue is greater than marginal revenue. Marginal revenue equals the change in total revenue from selling one more unit. Price equals average revenue.
Mathematics
1 answer:
kotegsom [21]3 years ago
4 0

Answer: Second option is not true for a firm in perfect competition.

Step-by-step explanation:

We know that

In perfect competition, number of buyers and sellers are in large number, free entry and exit of firms, it sells homogenous products and can't earn abnormal profit.

In this competition, "Firm is the price taker, industry is the price maker".

and AR = MR as there is constant price fixed by the industry.

Hence, Second option is not true for a firm in perfect competition.

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