Question

1. In a perfectly competitive market, sellers sell at a price greater than marginal revenue for...

1. In a perfectly competitive market,

sellers sell at a price greater than marginal revenue for each unit sold.

average revenue is greater than marginal revenue for each unit sold.

sellers sell at a price below marginal revenue.

sellers sell at a price equal to average revenue which is also equal to marginal revenue.

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Answer #1

Answer to the question:

Option d: Sellers sell at a price equal to average revenue which is equal to the marginal revenue.

Explanation: Under perfect competition the marginal revenue is equal to the average revenue, and thus, this curve is parallel to the OX axis. And the seller reaches its equilibrium in the long-run where AR=MR=Price=Marginal cost= Average cost.

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