In perfect competition, which relationship among total revenue (TR), average revenue (AR), and marginal revenue (MR) holds?

In perfect competition, which relationship among total revenue (TR), average revenue (AR), and marginal revenue (MR) holds?

• A. Total revenue equals price times quantity; average revenue equals TR divided by quantity; marginal revenue equals the derivative of TR; and MR = AR = price.
• B. Total revenue equals price plus quantity.
• C. Average revenue equals TR divided by price.
• D. MR is greater than AR in all output levels.

Answer: (A)