For a(n) competitive firm, the average-revenue schedule is also known as its:

• A. marginal-revenue schedule
• B. demand schedule
• C. cost schedule
• D. supply schedule

Answer: (B)

Verified step by step guidance

1. Understand the definitions: Average Revenue (AR) is the revenue a firm receives per unit of output sold, Marginal Revenue (MR) is the additional revenue from selling one more unit, and the Demand Schedule shows the relationship between price and quantity demanded.
2. Recall that in a perfectly competitive market, the firm is a price taker, meaning it sells its product at the market price without influencing it.
3. Since the firm sells each unit at the same market price, the Average Revenue (AR) equals the price, and this price is determined by the market demand.
4. Recognize that the Average Revenue schedule, which shows price at each quantity, coincides with the firm's demand schedule because the firm can sell any quantity at the market price.
5. Therefore, for a competitive firm, the Average Revenue schedule is the same as its demand schedule.