A purely competitive firm can be identified by the fact that
A)there are other firms in the industry producing similar products.
B)it is making only normal profits in the short run.
C)its average revenue equals its marginal revenue.
D)it experiences diminishing marginal returns.

Question

Quizplus · Accepted Answer

In a purely competitive market, a firm's average revenue equals its marginal revenue because the firm is a price taker and sells its product at the market price.

A Purely Competitive Firm Can Be Identified by the Fact