Under perfect competition, 'average revenue' and 'marginal revenue' are indicated by ____________.

a common horizontal straight line

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a common vertical straight line

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a common rectangular hyperbola

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different lines sloping downward

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Solution

The correct option is A a common horizontal straight line
Under perfect competition, 'average revenue' and 'marginal revenue' are indicated by a common horizontal straight line as under perfect competition, any level of quantity can be demanded at a prevailing price in the market.

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Similar questions

State, with valid reasons, which of the following statements are true or false:

a. Average Revenue curve under the Perfect Competition is a downward sloping curve.

b. AFC curve is a rectangular hyperbola curve.

c. When MR is falling but positive, TR will also be falling and positive.

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