1. Why can't a perfectly competitive firm charge a price premium (sell at a higher price) for its product relative to other firms in the industry? What is the term given to perfectly competitive firms since they must sell at the market equilibrium price?   2. For a perfectly competitive firm, what is the relationship between Price and Marginal Revenue?

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter8: Perfect Competition
Section: Chapter Questions
Problem 33CTQ: Since a perfectly competitive firm can sell as much as it wishes at the market price, why can the...
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1. Why can't a perfectly competitive firm charge a price premium (sell at a higher price) for its product relative to other firms in the industry? What is the term given to perfectly competitive firms since they must sell at the market equilibrium price?

 

2. For a perfectly competitive firm, what is the relationship between Price and Marginal Revenue?

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