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The AR curve and industry demand curve are the same: (a) in case of monopoly (b) in case of oligopoly (c) in case of perfect competition (d) none of these Plss anyone answer it with appropriate reason as some books are telling the answer is (a) while in some the answer is (c).?
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The AR curve and industry demand curve are the same: (a) in case of mo...
The correct option is 'c'. It is because AR(price), price taker means that an individual firm has no option but to sale at a price determined by the industry. Under perfect competition an individual firm cannot influence the price on its own as it share in total market supply is negligible. So, firm is price taker (AR) &industry is the price maker.
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The AR curve and industry demand curve are the same: (a) in case of mo...
Explanation:
The AR (Average Revenue) curve represents the revenue generated by a firm for selling a particular quantity of output at different prices. The industry demand curve represents the demand for a particular product in the market at different prices.
In case of monopoly:
In case of a monopoly, the firm is the only supplier of a particular product in the market. Therefore, the demand curve for the firm is the same as the industry demand curve. The AR curve and industry demand curve are the same in this case because the firm has complete control over the price and quantity of output supplied to the market. The firm faces a downward sloping demand curve, which means that it can increase its revenue by reducing the quantity of output supplied to the market.
In case of perfect competition:
In case of perfect competition, there are a large number of firms in the market, and each firm is a price taker. The industry demand curve is a horizontal line at the market price, and each firm faces the same demand curve. The AR curve for a firm is also a horizontal line at the market price.
In case of oligopoly:
In case of an oligopoly, there are a few dominant firms in the market. Each firm faces a downward sloping demand curve, but the industry demand curve is not the same as the AR curve. The industry demand curve is affected by the actions of all the firms in the market, while the AR curve for a firm is affected only by its own actions. In an oligopoly, firms may engage in strategic behavior, such as price collusion or non-price competition, which can affect the industry demand curve.
Conclusion:
Therefore, the answer to the question is (a) in case of monopoly, the AR curve and industry demand curve are the same, while in case of perfect competition, the AR curve is a horizontal line at the market price, and in case of oligopoly, the industry demand curve is not the same as the AR curve.
The AR (Average Revenue) curve represents the revenue generated by a firm for selling a particular quantity of output at different prices. The industry demand curve represents the demand for a particular product in the market at different prices.
In case of monopoly:
In case of a monopoly, the firm is the only supplier of a particular product in the market. Therefore, the demand curve for the firm is the same as the industry demand curve. The AR curve and industry demand curve are the same in this case because the firm has complete control over the price and quantity of output supplied to the market. The firm faces a downward sloping demand curve, which means that it can increase its revenue by reducing the quantity of output supplied to the market.
In case of perfect competition:
In case of perfect competition, there are a large number of firms in the market, and each firm is a price taker. The industry demand curve is a horizontal line at the market price, and each firm faces the same demand curve. The AR curve for a firm is also a horizontal line at the market price.
In case of oligopoly:
In case of an oligopoly, there are a few dominant firms in the market. Each firm faces a downward sloping demand curve, but the industry demand curve is not the same as the AR curve. The industry demand curve is affected by the actions of all the firms in the market, while the AR curve for a firm is affected only by its own actions. In an oligopoly, firms may engage in strategic behavior, such as price collusion or non-price competition, which can affect the industry demand curve.
Conclusion:
Therefore, the answer to the question is (a) in case of monopoly, the AR curve and industry demand curve are the same, while in case of perfect competition, the AR curve is a horizontal line at the market price, and in case of oligopoly, the industry demand curve is not the same as the AR curve.
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The AR curve and industry demand curve are the same: (a) in case of monopoly (b) in case of oligopoly (c) in case of perfect competition (d) none of these Plss anyone answer it with appropriate reason as some books are telling the answer is (a) while in some the answer is (c).?
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The AR curve and industry demand curve are the same: (a) in case of monopoly (b) in case of oligopoly (c) in case of perfect competition (d) none of these Plss anyone answer it with appropriate reason as some books are telling the answer is (a) while in some the answer is (c).? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about The AR curve and industry demand curve are the same: (a) in case of monopoly (b) in case of oligopoly (c) in case of perfect competition (d) none of these Plss anyone answer it with appropriate reason as some books are telling the answer is (a) while in some the answer is (c).? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The AR curve and industry demand curve are the same: (a) in case of monopoly (b) in case of oligopoly (c) in case of perfect competition (d) none of these Plss anyone answer it with appropriate reason as some books are telling the answer is (a) while in some the answer is (c).?.
The AR curve and industry demand curve are the same: (a) in case of monopoly (b) in case of oligopoly (c) in case of perfect competition (d) none of these Plss anyone answer it with appropriate reason as some books are telling the answer is (a) while in some the answer is (c).? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about The AR curve and industry demand curve are the same: (a) in case of monopoly (b) in case of oligopoly (c) in case of perfect competition (d) none of these Plss anyone answer it with appropriate reason as some books are telling the answer is (a) while in some the answer is (c).? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The AR curve and industry demand curve are the same: (a) in case of monopoly (b) in case of oligopoly (c) in case of perfect competition (d) none of these Plss anyone answer it with appropriate reason as some books are telling the answer is (a) while in some the answer is (c).?.
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The AR curve and industry demand curve are the same: (a) in case of monopoly (b) in case of oligopoly (c) in case of perfect competition (d) none of these Plss anyone answer it with appropriate reason as some books are telling the answer is (a) while in some the answer is (c).?, a detailed solution for The AR curve and industry demand curve are the same: (a) in case of monopoly (b) in case of oligopoly (c) in case of perfect competition (d) none of these Plss anyone answer it with appropriate reason as some books are telling the answer is (a) while in some the answer is (c).? has been provided alongside types of The AR curve and industry demand curve are the same: (a) in case of monopoly (b) in case of oligopoly (c) in case of perfect competition (d) none of these Plss anyone answer it with appropriate reason as some books are telling the answer is (a) while in some the answer is (c).? theory, EduRev gives you an
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