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At what rate TR of the …

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At what rate TR of the firm will increase if it is facing a perfect elastic demand curve and price of the product happens to ₹10 per unit give logical reasoning and also show that AR = price

    • Posted by Rakshit Chakarvarti 6 years, 7 months ago

    CBSE > Class 12 > Economics
    • 2 answers

    Roshni Bhatia 6 years, 7 months ago

    When a firm has perfectly elastic demand ,this implies that AR curve(demand curve) is horizontal straight line. This keans firm is in perfect competetion. So, MR=AR. AR is constant in perfectly competitive market. TR will increase at constant rate

    1Thank You

    Nishika Arora 6 years, 7 months ago

    TR will increase at the rate of 10 rs bczz under perfect competition market MR equals AR and MR is the rate at which TR rises .... TR= price*quantity and AR equals TR divide by qty by substituting value of TR u will get AR equals price.....

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