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 - Quick Quiz for Figure 8.3: 1

Answer

D The firm is a price taker.

Work Step by Step

Since the firm is in perfect competition. it is a price taker and the demand it faces is perfectly elastic. Therefore, the MR curve is also horizontal.
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