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A purely competitive firm can be identified by the fact that a. there are other firms in the industry producing similar productsb. It is making only normal profits in the short runc. Its average revenue equals its marginal revenued. It experiences diminishing marginal returns

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agustinsr99

Answer: The correct answer is "c. Its average revenue equals its marginal revenued.".

Explanation: In perfect competition: marginal revenue = price , because the company is a price acceptor. Therefore, the company in perfect competition expands production to the point where the marginal cost is equal to the price. And since the marginal revenue is equal to the price, mathematically the average revenue is equal to these, that is to say Marginal revenue = Price = Average revenue

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