In a perfectly competitive market, a firm’s

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In a perfectly competitive market, a firm’s

1. Average Revenue is always equal to Marginal Revenue
2. Marginal Revenue is more than Average Revenue
3. Average Revenue is more than Marginal Revenue
4. Marginal Revenue and Average Revenue are never equal

Correct Option: A

Average revenue is the amount money received by a firm per unit of output sold. Marginal revenue is the change in total revenue resulting from a small change in the quantity sold. In a perfectly competitive market, a firm’s Average Revenue is always equal to Marginal Revenue.