- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 1. The Firm and Market Structures
- Subject 3. Marginal Revenue, Marginal Cost and Profit Maximization
CFA Practice Question
For price takers, ______
II. marginal revenue equals total revenue.
III. price equals total revenue.
I. price equals marginal revenue.
II. marginal revenue equals total revenue.
III. price equals total revenue.
Correct Answer: I
A constant price means that the change in revenue - the marginal revenue - is constant and equal to the price.
User Contributed Comments 1
| User | Comment |
|---|---|
| Yass0707 | TR=P*Q for price taker - any Q at same P TR incrasing by P so MR (marginal revenu or increasing in one more unit) is equal to P |