Question

Explain the relationship between AR, MR and TR when AR is constant with the help of diagram.​

Answer 1

Answer:

Explanation:

MR(Rs.) As seen in the given schedule and diagram, price (AR) remains same at all level of output and is equal to MR. As a result, demand curve (or AR curve) is perfectly elastic. Always remember that when a firm is able to sell more output at the same price, then AR = MR at all levels of output.