Q. 45.0( 1 Vote )
In an imperfectly
In the markets experiencing imperfect competition, the average revenue (AR) and marginal revenue (MR) curves would be a downward sloping straight line with the MR being less than the AR. The TR curve will initially slope upwards, reach a maximum and then slope downwards.
The relationship between AR and MR can be stated as:
• When TR curve slopes upwards, MR will be positive.
• When TR curve is at maximum, MR will be zero.
• When TR is downward sloping, MR will be negative.
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