Respuesta :
All firms can use the Mr = mc rule, but it can only be rewritten as p = mc when applied to firms that are purely competitive.
What is the only rivalry?
Pure competition is a marketing scenario where numerous providers offer comparable products at comparable prices. In markets with only one competitor, corporations have little power over prices. The opposite of a monopoly, where one company has complete price control since there aren't any rivals, is pure competition. Monopoly and pure competition are each end of the commerce spectrum that marketers might use to assess the current industries.
In purely competitive markets, all goods are identical. Despite not being identical, products may have similar packaging, colors, and shapes.
Customers may not have product preferences since products are comparable, and they typically purchase everything equally. Similar to how customers may not have preferences, businesses might advertise to everyone in the same manner. Environmental aspects including the location of suppliers and customers as well as transportation have little impact on business profits.
Therefore, P=MC is used in a market with perfect competition. This is because there are many businesses that are in competition with one another in PCM, which is why MR=P.
To maximize profit in a monopoly market, MC=MR is used. Monopolistic companies have some power, which enables them to control output and selling prices.
For more information on the pure competition, refer to the following link:
https://brainly.com/question/28189773
#SPJ4
