What Is the Relationship Among the Following Variables for a Perfectly

question 181

Multiple Choice

What is the relationship among the following variables for a perfectly competitive firm: the market price, average revenue and marginal revenue?

• A)Average revenue is equal to the market price; average revenue is greater than marginal revenue.
• B)The market price is equal to both average revenue and marginal revenue.
• C)Average revenue is equal to marginal revenue; average revenue is greater than the market price.
• D)As a firm lowers the market price to sell more output, marginal revenue and average revenue will be less than the market price.

---

Definitions:

Breast Cancer

A malignant tumor that originates in the cells of the breast, potentially leading to life-threatening growths if not treated.

Neutral Atom

An atom that has an equal number of protons and electrons, resulting in no overall electric charge.

Protons

Subatomic particles found in the nucleus of atoms, with a positive electric charge.

Electrons

Subatomic particles with a negative charge that circle around an atom's nucleus.