Home › Maharashtra HSC Class 12 (Commerce) › businessmathematics › Application of Derivatives › Marginal revenue (MR) for a price-taking firm (p…
Marginal revenue (MR) for a price-taking firm (perfect competition) equals
ATotal revenue (typical) (typical) (typical)
BTwice the price (typical) (typical)
CAverage revenue and equals the market price
DVariable cost (typical) (typical) (typical)
Answer & Solution
Correct answer: C. Average revenue and equals the market price
1. In perfect competition the firm faces a horizontal demand curve.
2. Each additional unit sells at the same market price P.
3. Hence TR = P×Q, AR = P, and MR = P.
4. Therefore MR = AR = P for a price-taker.
_Source: Maharashtra Balbharati Std XII Mathematics & Statistics (Commerce), Ch 7 "Application of Derivatives", §7.2 ¶§7.2_
Related questions
Elasticity of demand is given byProfit is maximised whereMarginal cost (MC) isTwo numbers have a sum of $24$. Their product is largest when the numbers areFor $f(x)=3x^4-8x^3+12x^2-48x+25$ on $[0,3]$, the critical point inside the interval isA cylindrical tank of radius $10$ m is filled with wheat at $314$ m$^3$/h. The depth of thThe maximum value of $[x(x-1)+1]^{1/3}$ for $0\le x\le 1$ isThe point on the curve $x^2=2y$ which is nearest to the point $(0,5)$ is