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Answer to Question #227356 in Microeconomics for Happiness
Question #227356
Which one of the following statements is incorrect? Under perfect competitionÂ
- A. marginal revenue is always equal to the price of the product.
-  B. average revenue is always equal to the price of the product.
-  C. average revenue is always equal to marginal revenue.
-  D. marginal revenue is always equal to marginal cost.
Expert's answer
D. average revenue is always equal to marginal revenue.
Explanation - Under prefect competition marginal revenue is equal to price of product not marginal cost.
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