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How we can say that AR=PRICE?

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How we can say that AR=PRICE?

Posted by Manasvi Kanchan 6 years, 11 months ago

CBSE > Class 12 > Economics

2 answers

Avni Gupta 6 years, 11 months ago

Because TR=qty *price And. AR=TR/qty On comparing these we can say that AR=PRICE

Ragini Singh 6 years, 11 months ago

In the perfect competition market price is fixed by industry in which firm can not make any changes only quantity is changed by firm due to which price is parallel to x axis and AR becomes equal to MR and Price.

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