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In perfect competition, the average revenue curve of a firm is

In perfect competition, the average revenue curve of a firm is
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Below the marginal revenue curve
  • B Downward sloping
  • C The marginal revenue curve
  • D Convex to the origin
Correct Answer: Option C
Explanation:
For a perfectly competitive firm, the average revenue curve is a horizontal, or perfectly elastic, line. It is the same as a marginal revenue curve which is also a horizontal line at the market price, implying perfectly elastic demand.

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