If a perfectly competitive firm sells 300 units of output at $1 per unit,its marginal revenue is:

A) less than $1.
B) $1.
C) more than $1 but less than $300.
D) $300.

Question

If a perfectly competitive firm sells 300 units of output at $1 per unit,its marginal revenue is:A) less than $1.B) $1.C) more than $1 but less than $300.D) $300.

Allyson Mathews · Accepted Answer

Final Answer : B, Explanation :  In a perfectly competitive market, a firm's marginal revenue is equal to the price of the last unit sold. Therefore, if the firm sells 300 units at $1 per unit, the marginal revenue is also $1.

If a perfectly competitive firm sells 300 units of output at $1 per unit,its marginal revenue is:

A) less than $1.
B) $1.
C) more than $1 but less than $300.
D) $300.

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