McqMate
Q. |
The AR curve and industry demand curve are identical |
A. | in case of monopoly |
B. | in case of oligopoly |
C. | in case of monopolistic competition |
D. | in case of perfect competition |
Answer» D. in case of perfect competition | |
Explanation: In a perfectly competitive market, firms are price takers and have no control over the market price. As a result, their individual demand curve is also the market demand curve, and their marginal revenue curve is also the market average revenue curve, also known as the industry demand curve. |
View all MCQs in
Fundamentals of Economics