Question

Draw the curves of AR and MR under perfect competition , monopoly and imperfect

competition.​

Answer 1

.a) It is a horizontal straight line under perfect competition. It indicates that elasticity of demand is infinite.

b) It slopes downward under monopoly. More can be sold only at a lower price. But it is not very elastic. This is because there are no close substitutes of a product in the market.

Answer 2

Answer:

I hope this will help you to clear your doubt .