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Under which market structure average revenue of a firm is equal...

This question belongs to Commerce Economics
Economics
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Under which market structure, average revenue of a firm is equal to its marginal revenue

Answer & Solution
Correct Answer: Option C
Under Perfect competition market structure, average revenue of a firm is equal to its marginal revenue. For a perfectly competitive firm, average revenue is not only equal to price, but more importantly, it is equal to marginal revenue, all of which are constant.
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