Question 26
Market StructuresWhich of these is true of a perfect competitor?
- A.P = AR < MR
- B.P > AR = MR
- C.P = MR < AR
- D.P = AR = MR.
Show the answer and explanation
Answer: D (P = AR = MR.)
Explanation
A perfect competitor sells every unit at the same market price, so P = AR = MR.