WAEC Economics 2019 Objective — Question 22

Question 22 of 50 from the West African Examinations Council (WAEC) Economics 2019 Objective paper, with the correct answer and a full explanation.

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

A. below the marginal revenue curve
B. downward sloping
C. the marginal revenue curveCorrect
D. convex to the origin

Explanation

In perfect competition, price is fixed for the firm (a price taker), so the average revenue (AR) curve and marginal revenue (MR) curve coincide — AR is the same as the MR curve.

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