Q129
Under perfect competition
A.
AC=AVC
B.
AR=AC
C.
AR=MC
D.
AR=MR
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Under perfect competition AR=MR. If the market price is unaffected by variations in the firm's output, then the firm's demand curve, its AR curve and MR curve will coincide in the same horizontal line.