WAEC - Economics (2019 - No. 21)
In perfect competition, the average revenue curve of a firm is
below the marginal revenue curve
downward sloping
the marginal revenue curve
convex to the origin
Vysvětlení
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.