Why is marginal revenue equal to price?

1 Answer
Nallasivam V
Dec 1, 2015

Under perfect competition, MR is equal to Price.

Explanation:

Whatever be the market for, price is always equal to AR. But AR and MR are equal only under perfect competition. Hence price is equal to MR.

This is not possible either in Monopoly or Monopolistic Cempetition.

Refer the Table

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