Q93
In case of perfect competition in the market
A.
Marginal revenue curve always slopes upward
B.
Marginal revenue curve always slopes downwards
C.
Marginal revenue is always equal to average revenue
AnswerD.
Marginal revenue is always less than average revenue
Answer: Option C
Solution
Answer: Option C
Solution:
In case of perfect competition in the market marginal revenue is always equal to average revenue. They coincide because marginal revenue is equal to average revenue at every output quantity. The equality between marginal revenue and average revenue is the result of perfect competition.