The table shows the demand schedude for Megs Price Quantity

The table shows the demand schedude for Meg\'s Price Quantity demanded dollars per box)bones per day Meg\'s Nails operates in a market called NB. a perfect oligopoly O C. a monopoly O D. an oligopoly tchmarieE. perfect competion Medsmargnal sevenefor each ba at nals dernandedn$ ASU

Solution

Ans is E and marginal revenue=40

Since price remains same in perfect competiton and in above schedule too, price has remainned same at $40. Thus Megs demand curve is perfectly elastic and in perfectly competitively market P=AR=MR always.

Thus P=AR=MR=40 which means firms are price taker.