Question

If will's print shop competes in a perfectly competitive market and he charges $10 per printing job, what is the marginal revenue of his 3rd print job?

Answer 1

In a perfectly competitive market, where there are no constraints on prices or who is able to purchase, the marginal revenue is equal to the amount of revenue earned by each job. In this case, that would be the $10 he would earn for the 3rd (and subsequent) print jobs.