Why are marginal revenue and price equal for the perfectly competitive – InterviewSolution

1.	Why are marginal revenue and price equal for the perfectly competitive firm?
Answer» Marginal revenue for competitive firms is typically constant. This is because the market DICTATES the optimal price level and COMPANIES do not have much—if any—discretion over the price. As a result, perfectly competitive firms maximize profits when marginal COSTS equal market price and marginal revenue.Explanation:follow for more

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