Which of the following correctly describes the relationship between Average Revenue (AR) and Marginal Revenue (MR)?

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Economics · Economics

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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When average revenue is falling, marginal revenue is less than average revenue.

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Answer 1

When average revenue is falling, marginal revenue is less than average revenue.

Answer 2

Under perfect competition, average revenue is not equal to marginal revenue.

Answer 3

When average revenue is falling, marginal revenue is greater than average revenue.

Answer 4

Under imperfect competition, average and marginal revenue curves coincide perfectly.

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