why are ar and mr equal under perfect competition?
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Heya....
Perfect competition is that market in which there is no control over prices by any individual seller....
He is compelled to sell any amount of commodity at the prevailing prices....
** If he sells the good at same price then,, the marginal revenue will be constant due to same level of average revenue.......
** This,,, leads to get equal AR and MR in perfect competition...
Perfect competition is that market in which there is no control over prices by any individual seller....
He is compelled to sell any amount of commodity at the prevailing prices....
** If he sells the good at same price then,, the marginal revenue will be constant due to same level of average revenue.......
** This,,, leads to get equal AR and MR in perfect competition...
Answered by
2
Perfect competition is that market in which there is no control over prices by any individual seller....
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