NABTEB Economics 2023 Objective — Question 21
Question 21 of 50 from the National Business and Technical Examinations Board (NABTEB) Economics 2023 Objective paper, with the correct answer and a full explanation.
Advertisement
The average revenue curve of a firm in a perfect market is the same as the A. supply curve of the firm B. demand curve of the firm C. total revenue curve of the firm D. average cost curve of the firm
- A. supply curve of the firm
- B. demand curve of the firmCorrect
- C. total revenue curve of the firm
- D. average cost curve of the firm
Explanation
In a perfectly competitive market, a firm is a price taker with a perfectly elastic demand curve, which coincides with its average revenue (and marginal revenue) curve, i.e. D = AR = MR.
Advertisement
Sign up free to unlock
- Score tracking
- Practice history
- Saved questions
- Progress dashboard
- Personalized sessions
- Weak-topic breakdown
…and/or go further with premium services and No Ads.