Asked by
Claudia Gallifuoco
on Nov 04, 2024
Verified
The marginal revenue curve for a perfectly competitive firm will be downward sloping.
Marginal Revenue Curve
A graphical representation that shows how much additional revenue a firm will make by selling one more unit of a product.
Perfectly Competitive Firm
A company operating in a market where there are many sellers and buyers, the product is homogeneous, and there are no barriers to entry or exit.
Downward Sloping
Describes a line or curve on a graph that shows a decrease in value as it moves from left to right.
- Acquire insight into the idea of marginal revenue and its impact on the pricing and production decisions of a firm.
Verified Answer
TH
Learning Objectives
- Acquire insight into the idea of marginal revenue and its impact on the pricing and production decisions of a firm.