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The AR curve and industry demand curve are same in case of

A. Monopoly

B. Oligopoly

C. Perfect competition

D. None of the above

Answer: Option A

Solution(By Examveda Team)

The AR curve and industry demand curve are same in case of Monopoly. In a monopoly, the price is set above marginal cost and the firm earns a positive economic profit. Perfect competition produces an equilibrium in which the price and quantity of a good is economically efficient.

This Question Belongs to Commerce >> Economics

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Comments ( 2 )

  1. Prachi Bhatt
    Prachi Bhatt :
    6 years ago

    Why monopoly .why not perfect competition?

  2. LOVELYBOY Prashant
    LOVELYBOY Prashant :
    6 years ago

    But how in case of monopoly as we know that AR curve also represent demand curve in perfect competition

Related Questions on Economics

Which among the following statement is INCORRECT?

A. On a linear demand curve, all the five forms of elasticity can be depicted

B. If two demand curves are linear and intersecting each other, then, coefficient of elasticity would be same on different demand curves at the point of intersection.

C. If two demand curves are linear and parallel to each other, then, at a particular price, the coefficient of elasticity would be different on different demand curves.

D. The price elasticity of demand is expressed in terms of relaive not absolute changes in Price and Quantity demanded.