The average revenue curve of a firm in a perfect market is the same as...
ECONOMICS
WAEC 2023
The average revenue curve of a firm in a perfect market is the same as the
- A. supply curve of the firm
- B. average cost curve of the firm
- C. demand curve of the firm
- D. total revenue curve of the firm
Correct Answer: C. demand curve of the firm
Explanation
The average revenue curve of a firm in a perfect market is the same as the demand curve of the firm. This is because in a perfect market, the firm is a price taker, meaning that they cannot influence the market price. As a result, the firm's demand curve is also the market demand curve, and the average revenue curve is equal to the demand curve.
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