What Is the Relationship Among the Following Variables for a Perfectly

Multiple Choice

What is the relationship among the following variables for a perfectly competitive firm: the market price, average revenue and marginal revenue?

A) Average revenue is equal to the market price; average revenue is greater than marginal revenue.
B) The market price is equal to both average revenue and marginal revenue.
C) Average revenue is equal to marginal revenue; average revenue is greater than the market price.
D) As a firm lowers the market price to sell more output, marginal revenue and average revenue will be less than the market price.