ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -MR = P. Thus, for a perfect competitive firm, marginal revenue is equal to the market price per unit of output.

Detailed explanation-2: -Marginal revenue equals the sale price of an additional item sold. To calculate the marginal revenue, a company divides the change in its total revenue by the change of its total output quantity. Marginal revenue is equal to the selling price of a single additional item that was sold.

Detailed explanation-3: -Marginal revenue (or marginal benefit) is a central concept in microeconomics that describes the additional total revenue generated by increasing product sales by 1 unit.

Detailed explanation-4: -In a perfectly competitive market, MR is equal to the market price P for all levels of output. These points imply that a perfectly competitive firm will maximize profit by producing output where P = MC. 2.

Detailed explanation-5: -price is always equal to marginal revenue. In perfect competition, firms have no market power and have to accept the price set by the market. All units are sold at the same price. This means that the marginal revenue of each unit sold is the same and equal to the price.