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WAEC Economics 2019 Question 21

Question 21

Market Structures

In perfect competition, the average revenue curve of a firm is

  1. A.below the marginal revenue curve.
  2. B.downward sloping.
  3. C.the marginal revenue curve.
  4. D.convex to the origin.
Show the answer and explanation

Answer: C (the marginal revenue curve.)

Explanation

A perfect competitor sells every unit at the same price, so AR = MR: one horizontal line.