Explain why a demand curve is also a curve of average revenue. Recalling that when average revenue curve is not falling nor rising, marginal revenue must equal average revenue, explain why it is always true that $ = MR = AR for the perfectly competitive firm

Explain why a demand curve is also a curve of average revenue. Recalling that when average revenue curve is not falling nor rising, marginal revenue must equal average revenue, explain why it is always true that $ = MR = AR for the perfectly competitive firm

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter10: The Firm And The Industry Under Perfect Competition

Section: Chapter Questions

Problem 2DQ

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Defintion Defintion Curve that represents the graphical relationship between the total supply of goods and services and the price level in the economy. When the price level increases, producers tend to supply more of a product in the market to earn a higher revenue or vice versa.

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