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Question
Statement 1: Marginal revenue curve is parallel to the x-axis.
Statement 2: The slope of the marginal revenue curve is upward sloping.
Options
Both the statements are true.
Both the statements are false.
Statement 1 is true but statement 2 is false.
Statement 1 is false but statement 2 is true.
MCQ
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Solution
Statement 1 is true but statement 2 is false.
Explanation:
In a perfectly competitive market, the marginal revenue curve is parallel to the price axis. As a result, it is parallel to the x-axis.
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