Question

AR curve is a horizontal straight line, the MR curve will be ______

Options

• Downward sloping

• Horizontal straight line

• Upward sloping

• Inversely shaped

Answer 1

AR curve is a horizontal straight line, the MR curve will be  Horizontal straight line.

Explanation:

The AR curve is a horizontal straight line in the situation of perfect competition. As a result, the TR curve continues to increase at a constant rate, and the AR and MR curves are horizontal straight lines.