Average revenue and marginal revenue are equal at each output level in
A)pure competition.
B)monopolistic competition.
C)monopoly.
D)oligopoly.

Question

Quizplus · Accepted Answer

In pure competition, the price remains constant regardless of the quantity sold, making the average revenue (AR) equal to the marginal revenue (MR) at all levels of output. This is because firms in pure competition are price takers due to the large number of competitors and the homogeneous nature of the product.

Average Revenue and Marginal Revenue Are Equal at Each Output