Explain the relationship between MR & AR with the help of diagram.
Answers
Answered by
0
Answer:
A firm can sell more quantity of output at the same price (see Table 7.2). It means, the revenue from every additional unit (MR) is equal to AR. ... 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.
Similar questions