Use the following figure to answer the question : Figure 9-3 : shows the marginal cost curve,average total cost curve,average variable cost curve,and marginal revenue curve for a firm for different levels of output.
-Refer to Figure 9-3.If the market price is $10,average revenue _____.
A)is greater than $10
B)is less than $10
C)equals $10
D)is equal to $10 - GZ

Question

Use the following figure to answer the question : Figure 9-3 : shows the marginal cost curve,average total cost curve,average variable cost curve,and marginal revenue curve for a firm for different levels of output. 
-Refer to Figure 9-3.If the market price is $10,average revenue _____.
A)is greater than $10 
B)is less than $10 
C)equals $10 
D)is equal to $10 - GZ

Quizplus · Accepted Answer

In a competitive market, the price is equal to the average revenue (AR), so if the market price is $10, the average revenue is also $10. Therefore, the correct choice is C, which states that the average revenue equals $10. The other choices are incorrect because they do not reflect the relationship between price and average revenue in a competitive market.

Use the Following Figure to Answer the Question : Figure