Question

What are the relation between mr and ar in monopoly market?

Answer 1

Under monopolistic competition, the relationship between AR and MR is the same as under monopoly. But there is an exception that the AR curve is more elastic, as shown in Figure 6. This is because products are close substitutes under monopolistic competition. The firm can increase its sales by a reduction in its price

Answer 2

Explanation:

For a firm under perfect competition, MR = AR. In fact, when price remains fixed, AR, MR and price are all equal to one another. Since a monopolist is the sole seller of a commodity, its demand curve is the same as the market demand curve for that product.