Question

When average revenue is constant , what is the shape of marginal revenue?​

Answer 1

Answer:

When average revenue is constant, marginal revenue= average revenue. Both AR and MR are indicated by the same horizontal straight line parallel to X axis .

Answer 2

hey mate...

here is your answer...

In our example, average revenue is = 500/100 = $5. Thus, average revenue means price. Marginal revenue is the addition to total revenue by selling one more unit of the commodity.

In simple terms, the firm is a 'price-taker' and the firm's demand curve is infinitely elastic. As the firm sells more and more at the given price, its total revenue will increase but the rate of increase in the total revenue will be constant, since AR = MR.

>refer to the attachment

hope it helps...