A perfectly competitive firm's demand curve coincides with
A) both its marginal and total- revenue curves.
B) its average- revenue curve and total- revenue curve.
C) its total- revenue curve.
D) the market demand curve.
E) both its marginal and average- revenue curves.

Question

Quizplus · Accepted Answer

In perfect competition, a firm's demand curve is perfectly elastic and coincides with both its marginal revenue (MR) and average revenue (AR) curves, as price equals MR and AR.

A Perfectly Competitive Firm's Demand Curve Coincides with