Relation between market price and marginal revenue


In the situation of imperfect competition, the relation between market price P and marginal revenue MR for each supplying firm is that:

1) P is less than MR at all or most output levels.

2) P is greater than MR at all or most output levels.

3) P is the same as MR at all output levels

4) P is either less than MR at particular output levels or the same as MR

5) none of the above, since P is not related to MR.

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Microeconomics: Relation between market price and marginal revenue
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