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Marginal revenue of a firm is constant throughout under: - Economic Applications

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Question

Marginal revenue of a firm is constant throughout under:

Options

  • Perfect Competition

  • Monopolistic Competition

  • Oligopoly

  • All the above

MCQ
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Solution

Perfect Competition

Explanation:

A firm's marginal revenue remains constant under perfect competition because it is a price taker. This means that the firm can sell any amount of its product at the current market price, and the additional revenue obtained from selling one more unit (marginal revenue) is constant and equal to the price.

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Chapter 5: Nature and Structure of Markets - QUESTIONS [Page 134]

APPEARS IN

Goyal Brothers Prakashan Economic Applications [English] Class 10 ICSE
Chapter 5 Nature and Structure of Markets
QUESTIONS | Q 6. | Page 134
Goyal Brothers Prakashan Economics [English] Class 10 ICSE
Chapter 5 Meaning and Types of Markets
Exercise | Q 6. | Page 113

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