Question

why does marginal revenue equal average revenue in perfect competition

Answer 1

Heya....

In the perfect competition marginal cost and marginal revenue are just equal....

Because .....

"" Large no of buyers and sellers ....

"" Homogeneous product....

"" No price control over price by the individual....

Thank you

Answer 2

Explanation:

They coincide because marginal revenue is equal to average revenue at every output quantity. The equality between marginal revenue and average revenue is the result of perfect competition. Because Phil receives the same per unit price for every worker, incremental revenue is equal to the per unit revenue.