Write True and False with the reason :-
(a)
AR curve is also called firm's demand curve.
Answers
Answered by
0
true ar curve is also known as demand curve .
Answered by
1
In Microeconomics,under perfectly competitive market structure,the Average Revenue(AR) curve represents the firm's demand curve for the output produced.Therefore,the given statement is true.
Explanation:
AR curve illustrates the average level of revenue obtained by a firm or company from selling its output in the market.In a perfectly competitive market,the AR also represents the market price for a particular good or service to be sold.Therefore,when the firm or company sells its product or service,the price it receives is equivalent to the AR obtained from each sale.This is the price level at which the firm or company is willing to sell its product or service in the market.Hence,AR curve also represents the firms's demand curve for its output.
Similar questions