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In case of perfect competition in the market

A. Marginal revenue curve always slopes upward

B. Marginal revenue curve always slopes downwards

C. Marginal revenue is always equal to average revenue

D. Marginal revenue is always less than average revenue

Answer: Option C

Solution(By Examveda Team)

In case of perfect competition in the market marginal revenue is always equal to average revenue. They coincide because marginal revenue is equal to average revenue at every output quantity. The equality between marginal revenue and average revenue is the result of perfect competition.

This Question Belongs to Commerce >> Economics

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Related Questions on Economics

Which among the following statement is INCORRECT?

A. On a linear demand curve, all the five forms of elasticity can be depicted

B. If two demand curves are linear and intersecting each other, then, coefficient of elasticity would be same on different demand curves at the point of intersection.

C. If two demand curves are linear and parallel to each other, then, at a particular price, the coefficient of elasticity would be different on different demand curves.

D. The price elasticity of demand is expressed in terms of relaive not absolute changes in Price and Quantity demanded.