Economy, asked by suntosi708, 6 months ago

state the relationship between AR and MR​

Answers

Answered by SmudgeJasmine
5

\huge\boxed{\fcolorbox{black}{pink}{Answer}}

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.

HOPE THIS HELPS YOU DEAR

Similar questions