When is marginal revenue equal to price?

1 Answer
Nov 20, 2015

When MR coincides with AR curve, Price is equal to Marginal Revenue.

Explanation:

When Marginal Revenue and Average are equal to one another, Price is equal to Marginal Revenue. This happens in Perfect competition.

Under this market form, a firm has a perfectly elastic demand curve. MR curve coincides with AR curve. Price is equal to Marginal Revenue.