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A firm is able to sell any quantity of a good at a given price. The firm's Marginal Revenue will be____________.
More than average revenue
Less than average revenue
Equal to average revenue
None of the above
Option (3) is correct. Explanation: When a firm is able to sell any quantity of a good at a given price. This happens under perfect competition when price of a good remains constant. Then, firm's marginal revenue is equal to average revenue.
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