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Gross Profit Ratio

Marginal reve...

Question

Marginal revenue refers to the price of the last unit of a commodity.

A

True

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B

False

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Solution

The correct option is B False
Marginal revenue simply refers to additional revenue earned when an additional unit of a commodity is sold. It happens to be equal to price under perfect competition. But under monopoly and monopolistic competition, $M R$ and price are different from each other.

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