- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 1. The Firm and Market Structures
- Subject 6. Perfect Competition
CFA Practice Question
Price takers face ______.
A. constant total revenues
B. falling marginal revenues
C. constant marginal revenue
Explanation: When price is constant, marginal revenue is equal to price and is constant as well.
User Contributed Comments 3
| User | Comment |
|---|---|
| eddeb | P = MR |
| Kuki | price takers = perfect competition.... |
| r3v3r3n6o | Doesn't MR constant on perfect competition because demand is perfectly elastic? |