Share
Notifications

View all notifications

Comment on the Shape of Mr Curve in Case When Tr Curve is a - Economics

Login
Create free account


      Forgot password?
ConceptOther Non - Perfectly Competitive Markets

Question

Comment on the shape of MR curve in case when TR curve is a positively sloped straight line.

Solution

Based on the relationship between MR and TR it can be said that when TR curve is a positively sloped straight line, then MR curve is a horizontal line. MR and demand curve are the same, and the price (AR) remains constant for different output levels. This happens under perfect competition.

  Is there an error in this question or solution?

APPEARS IN

Solution Comment on the Shape of Mr Curve in Case When Tr Curve is a Concept: Other Non - Perfectly Competitive Markets.
S
View in app×