Business Studies, asked by Susmitakashyap2594, 11 months ago

why are ar and mr equal under perfect competition?

Answers

Answered by Anonymous
1

In a perfectly competitive market, the AR curve coincides with the MR curve. The reason behind this lies in the fact that in a perfectly competitive market, firm is the price taker and industry is the price maker. That is, the firms has to accept the price set by the industry for the sale of commodities.

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