Question

For a perfectly competitive seller, price equals?

1) Marginal cost
2) Average cost
3) Marginal revenue
4) Total revenue

Answer 1

In perfect competition, the price for a perfectly competitive seller equals marginal revenue.

Step-by-step explanation:

A perfectly competitive seller faces a perfectly elastic demand curve for its product, meaning it can sell any quantity at the market-determined price. Therefore, in perfect competition, the price equals marginal revenue. This is because in perfect competition, the firm can sell any number of units at exactly the same price, resulting in marginal revenue being equal to the price.