For which of the following types of firms does the average revenue curve coincide with the marginal revenue curve?

Question

Quizplus · Accepted Answer

In a perfectly competitive market, there are many identical firms selling the same product. The firms are price takers and have no market power to influence the price. Hence, the demand curve faced by each firm is perfectly elastic, which means that the marginal revenue (MR) curve coincides with the average revenue (AR) curve, which is the horizontal demand curve at the market price. Therefore, the answer is (D) a perfectly competitive firm.

For Which of the Following Types of Firms Does the Average