Under which market structure, average revenue of a firm is equal to its marginal revenue
A
Oligopoly
B
Monopoly
C
Perfect competition
D
Monopolistic competition
Correct Answer: Perfect competition
Under Perfect competition market structure, average revenue of a firm is equal to its marginal revenue. For a perfectly competitive firm, average revenue is not only equal to price, but more importantly, it is equal to marginal revenue, all of which are constant.