The demand curve as seen by a single firm within a perfectly competitive industry.    Notice the three labels on the Demand curve; D, MR, and AR.
MR - Marginal Revenue
is the extra revenue a firm receives from selling one more unit of output. Since the demand curve is horizontal the firm need not lower price to sell more. Therefore, the demand curve is the marginal revenue curve.
AR - Average Revenue
is simply total revenue divided by total sales and will always be the market price (P* in this instance) as long as all units are sold at the same price.

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