Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 8 - Pure Competition in the Short Run - Questions - Page 178: 3c

Answer

In a perfect competition, the MR curve and demand curve are the same.

Work Step by Step

In a perfect competition, the seller can sell as many units as he wants without affecting the price. This means, no matter how many units he sells, he will receive the same money from selling another unit. This means a firm's demand curve is perfectly elastic and his MR is equal to price.
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