All Courses
Explore Courses UPSC Exam UPSC Test Series Free Notes EduRev Infinity Get the App Login Join for Free
Sign in Open App
Commerce Exam  >  Commerce Questions  >  The AR curve and industry demand curve are th... Start Learning for Free
SaveJoin the Discussion on the App
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).?
Clear all your Commerce doubts with EduRev
Most Upvoted Answer
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.
Community Answer
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.
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
Explore Courses for Commerce exam

Similar Commerce Doubts

Direction: Read the following passage and answer the questions that follows:Market structure is best defined as the organisational and other characteristics of a market. We focus on those characteristics which affect the nature of competition and pricing – but it is important not to place too much emphasis simply on the market share of the existing firms in an industry.Key Summary on Market StructuresTraditionally, the most important features of market structure are: The number of firms (including the scale and extent of foreign competition) The market share of the largest firms (measured by the concentration ratio) The nature of costs (including the potential for firms to exploit economies of scale and also the presence of sunk costs which affects market contestability in the long term) The degree to which the industry is vertically integrated-vertical integration explains the process by which different stages in production and distribution of a product are under the ownership and control of a single enterprise. A good example of vertical integration is the oil industry, where the major oil companies own the rights to extract from oil fields, they run a fleet of tankers, operate refineries and have control of sales at their own filling stations. The extent of product differentiation (which affects cross-price elasticity of deman d) The structure of buyers in the industry (including the possibility of monopsony power) The turnover of customers (sometimes known as "market churn") i.e. how many customers are prepared to switch their supplier over a given time period when market conditions change. The rate of customer churn is affected by the degree of consumer or brand loyalty and the influence of persuasive advertising and marketing. Q. In which market, there is the highest market churn?

Top Courses for CommerceView all

Top Courses for Commerce

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).?
Question Description
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).?.
Solutions 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).? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning 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).? defined & explained in the simplest way possible. Besides giving the explanation 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).?, 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 ample number of questions to practice 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).? tests, examples and also practice Commerce tests.
Explore Courses for Commerce exam

Top Courses for Commerce

Explore Courses

Suggested Free Tests

Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Get App
© EduRev
Education Revolution
Follow Us
Signup to see your scores go up
within 7 days!
Takes less than 10 seconds to signup