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AR=MR ?

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AR=MR ?

    • Posted by Sougata Sarkar 6 years, 11 months ago

    CBSE > Class 12 > Economics
    • 2 answers

    Mohd Shariq Ms Raza 6 years, 11 months ago

    Ar =Mr refers to the same product of perfect combination with a homogeneous product at a price constant because Ar=Mr

    1Thank You

    Muskan Khatri 6 years, 11 months ago

    AR is equal to MR, in the case of perfect competition (because price (AR) is constant, TR rises at constant rate thus MR also becomes constant and goes equal to AR) But in case of monopoly or polistic, MR is lower than AR beacause TR rises at diminishing rate, and MR falls faster than AR.

    5Thank You

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