For a perfectly competitive firm, average revenue is:

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the price of the product is given and constant for each firm, meaning that the average revenue (which is total revenue divided by quantity, or simply the price per unit) is equal to the marginal revenue (the additional revenue from selling one more unit). This is because, in perfect competition, firms are price takers and can sell as much as they want at the market price.

For a Perfectly Competitive Firm, Average Revenue Is