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pure competition

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In pure competition:

the optimal price-output solution occurs at the point where marginal revenue is equal to price

a firm's demand curve is represented by a horizontal line

a firm is a price-taker since the products of every producer are perfect substitutes for the products of every other producer

a and b only

a, b, and c

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Solution Preview

In pure competition:

the optimal price-output solution occurs at the point where marginal revenue is equal to price

a firm's demand curve is represented by a horizontal line

a firm is a price-taker ...

Solution Summary

This explanation provides you a comprehensive argument relating to pure competition.

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