Question

Mr.Rameshpromisedtopay`50,000tohiswifeMrs.Lalisothat shecanspend thesumonher 30th

birthday. Mrs. Lali insisted her husband to make awritten agreement if he really loved her. Mr. Ramesh

made a written agreement and the agreement was registered under the law. Mr. Ramesh failed to pay the

specified amount to his wife Mrs. Lali. Mrs. Lali wants to file a suit against Mr. Ramesh and recover the

promised amount. Referring to the applicable provisions of the ContractAct, 1872,advise whetherMrs.

Laliwill succeed.​

Answer 1

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.