Question

What kind of competition is this firm faced with, perfect or imperfect?

Output Price Total revenue Average revenue Marginal revenue
0 20 0 20 20
1 20 20 20 20
2 20 40 20 20
3 20 60 20 20
4 20 80 20 20
5 20 100 20 20
6 20 120 20 20
7 20 140 20 20
8 20 160 20 20

Answer 1

This company is faced with perfect competition.

For perfect competition, with no market control, marginal revenue is equal to average revenue, and average revenue does not change.