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1 Dec 2021
Introduction
Perfect Competition- It refers to that market condition where there are a large number of buyers and sellers, who have perfect knowledge about the market and there is existence of homogeneity in the commodities and all the firms are price takers.
Marginal Revenue- It refers to the additional revenue/ income the firm receives when it sells an additional unit of the commodity. In a perfectly competitive market, the marginal revenue curve will be a horizontal straight line, indicating that additional revenue is constant.
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