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Because the revenue faced by the firm is equal to price, average revenue is also constant and equal to price.

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Because the revenue faced by the firm is equal to price, average revenue is also constant and equal to price.
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Solution 1

This statement is referring to the concept of perfect competition in economics. In a perfectly competitive market, each firm is a price taker, meaning it cannot influence the market price. The price is determined by the overall supply and demand in the market.

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