CFA Practice Question

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CFA Practice Question

For price takers, ______

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
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