Which of the following is true about the relationship between Total Revenue (TR) and Marginal Revenue (MR) in a perfectly competitive market?

(A) Total Revenue will increase at a constant rate.
(B) Marginal Revenue is more than Average Revenue.
(C) Marginal Revenue remains constant throughout.
(D) Marginal Revenue is equal to Average Revenue.

Choose the correct answer from the options given below:

(A), (C) and (D) only

The correct answer is Option (3) → (A), (C) and (D) only

In a perfectly competitive market, individual firms are "price takers," meaning they cannot influence the market price of their product. The price is determined by the overall market demand and supply. This unique characteristic leads to specific relationships between Total Revenue (TR), Marginal Revenue (MR), and Average Revenue (AR).

(A) Total Revenue will increase at a constant rate. In perfect competition, a firm sells each additional unit at the same constant market price. Therefore, for every extra unit sold, total revenue increases by the same amount (the market price). This means Total Revenue increases at a constant rate. This statement is true. 

(B) Marginal Revenue is more than Average Revenue. In perfect competition, Marginal Revenue (MR) is equal to the price, and Average Revenue (AR) is also equal to the price (since AR = Total Revenue / Quantity = (Price * Quantity) / Quantity = Price). Thus, MR = AR. This statement is false. 

(C) Marginal Revenue remains constant throughout. Since the firm can sell any quantity at the prevailing market price, the revenue earned from selling one additional unit (Marginal Revenue) is always equal to that constant market price. This statement is true.

(D) Marginal Revenue is equal to Average Revenue. As explained in (B), both Marginal Revenue and Average Revenue are equal to the constant market price in a perfectly competitive market. This statement is true.