Which of the following is characteristic of a purely competitive seller's demand curve?
A) Price and marginal revenue are equal at all levels of output.
B) Average revenue is less than price.
C) Its elasticity coefficient is 1 at all levels of output.
D) It is the same as the market demand curve.

Question

Quizplus · Accepted Answer

In a purely competitive market, the demand curve for an individual seller is perfectly elastic, meaning price equals marginal revenue and average revenue at all levels of output.

Which of the Following Is Characteristic of a Purely Competitive