What is the relationship among the following variables for a perfectly competitive firm: the market price, average revenue and marginal revenue?
A) As a firm lowers the market price to sell more output, marginal revenue and average revenue will be less than the market price.
B) Average revenue is equal to marginal revenue; average revenue is greater than the market price.
C) The market price is equal to both average revenue and marginal revenue.
D) Average revenue is equal to the market price; average revenue is greater than marginal revenue.
C
Economics
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