Question:
When average revenue equals marginal revenue at all levels of output, the market structure is:
When average revenue equals marginal revenue at all levels of output, the market structure is:
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Perfect Competition:
\[
P = AR = MR
\]
Updated On: Jun 3, 2026
- Monopoly
- Oligopoly
- Perfect Competition
- Monopolistic Competition
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The Correct Option is C
Solution and Explanation
Concept:
Under perfect competition:
\[
AR = MR = Price
\]
Step 1: Understanding perfect competition.
A perfectly competitive firm is a price taker.
Step 2: Revenue behavior.
Since the firm sells each additional unit at the same price: \[ MR = AR \]
Step 3: Evaluating options.
(A) Monopoly has downward sloping AR and MR.
(B) Oligopoly does not satisfy AR = MR always.
(C) Perfect competition satisfies AR = MR.
(D) Monopolistic competition also has downward sloping AR.
Step 4: Final conclusion.
Therefore: \[ \boxed{\text{(C) Perfect Competition}} \]
Step 1: Understanding perfect competition.
A perfectly competitive firm is a price taker.
Step 2: Revenue behavior.
Since the firm sells each additional unit at the same price: \[ MR = AR \]
Step 3: Evaluating options.
(A) Monopoly has downward sloping AR and MR.
(B) Oligopoly does not satisfy AR = MR always.
(C) Perfect competition satisfies AR = MR.
(D) Monopolistic competition also has downward sloping AR.
Step 4: Final conclusion.
Therefore: \[ \boxed{\text{(C) Perfect Competition}} \]
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