Due to increase in market demand industry price doubles. what happens to the marginal revenue of...
Due to increase in market demand industry price doubles. what happens to the marginal revenue of a perfectly competitive firm.
Homework Answers
For the perfectly competitive firm; price = marginal revenue always. So if the industry price doubles due to increase in demand the marginal revenue will also get doubled of the previous marginal revenue.
Therefore, new marginal revenue=2 old marginal revenue.
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Due to increase in market demand industry price doubles. what
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#5
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