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  >  Why is AR curve of a firm under perfect compe... Start Learning for Free
SaveJoin the Discussion on the App
Why is AR curve of a firm under perfect competition market parallel to x axis and negatively sloped under monopoly?
Clear all your Commerce doubts with EduRev
Most Upvoted Answer
Why is AR curve of a firm under perfect competition market parallel to...
It is because price of goods under perfect competition is constant because of competition if anyone fluctuate their price customer shifted to other firm so AR is constant so MR is constant too it's means AR = MR and in monopoly firm is price maker so they can set the price they want so it slope downward
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

Why is AR curve of a firm under perfect competition market parallel to x axis and negatively sloped under monopoly?
Question Description
Why is AR curve of a firm under perfect competition market parallel to x axis and negatively sloped under monopoly? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Why is AR curve of a firm under perfect competition market parallel to x axis and negatively sloped under monopoly? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Why is AR curve of a firm under perfect competition market parallel to x axis and negatively sloped under monopoly?.
Solutions for Why is AR curve of a firm under perfect competition market parallel to x axis and negatively sloped under monopoly? 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 Why is AR curve of a firm under perfect competition market parallel to x axis and negatively sloped under monopoly? defined & explained in the simplest way possible. Besides giving the explanation of Why is AR curve of a firm under perfect competition market parallel to x axis and negatively sloped under monopoly?, a detailed solution for Why is AR curve of a firm under perfect competition market parallel to x axis and negatively sloped under monopoly? has been provided alongside types of Why is AR curve of a firm under perfect competition market parallel to x axis and negatively sloped under monopoly? theory, EduRev gives you an ample number of questions to practice Why is AR curve of a firm under perfect competition market parallel to x axis and negatively sloped under monopoly? 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!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup