A. below the marginal revenue curve
B. downward sloping
C. the marginal revenue curve
D. convex to the origin

Correct Answer:

Option C = the marginal revenue curve


For a perfectly competitive firm, the average revenue curve is a horizontal, or perfectly elastic, line. It is the same as a marginal revenue curve which is also a horizontal line at the market price, implying perfectly elastic demand.

SEE ALSO  The production possibility curve (PPC) indicates that as more of one good is produced?

Copyright warnings! Do not copy.