Question

shape of ar curve under perfect competition is parallel to x axis because ?

Answer 1

Answer:

we know that average revenue is equal to the price of the commodity in perfect competition market . The Average revenue is constant (say 10) at different level of output .So when we draw the graph of the curve it will look like horizontal straight line parallel to the x - axis.

Thanks and ask your doubt regularly because I am also a commerce student study in 11 standard .