Which of the following is NOT a condition for profit maximization of a perfectly competitive firm in the short run?

Average revenue must be rising.

The correct answer is Option (2) → Average revenue must be rising.

For a perfectly competitive firm in the short run, the conditions for profit maximization are:

1. Price (P) = Marginal Cost (MC) — equilibrium condition.

2. MC is rising (non-decreasing) at the equilibrium output level.

3. Price (P) ≥ Average Variable Cost (AVC) — ensures the firm continues to operate (no shutdown).

However, Average Revenue (AR) is constant and equal to the market price in perfect competition — it is never rising or falling.