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. | |
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Fundamentals of EconomicsDiscussion
divyasree takellapati
2 years ago
In case of monopoly
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McqMate
2 years ago
The correct answer is D. in case of perfect competition. 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.
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