The figure above portrays a total revenue curve for a perfectly competitive firm. The price of the product in this industry

Adverse supply shocks can cause a recession with increasing price level

Indicate whether the statement is true or false

The MR = MC rule:

A. applies only to pure competition. B. applies only to pure monopoly. C. does not apply to pure monopoly because price exceeds marginal revenue. D. applies both to pure monopoly and pure competition.