Which of the following is a feature of a perfectly competitive firm?

Average Revenue is always equal to Marginal Revenue

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Marginal Revenue is more than Average Revenue

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Average Revenue is more than Marginal Revenue

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Marginal Revenue and Average Revenue are never equal

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A Average Revenue is always equal to Marginal Revenue
Average Revenue is the amount of money received by a firm per unit of output sold. Marginal Revenue is the change in total revenue resulting from a small change in the quantity sold. In a perfectly competitive market, a firm's Average Revenue is always equal to Marginal Revenue.

Suggest Corrections