Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Non Competitive markets

Question:
For a price taking firm, which of the following will be horizontal straight line?
Options:
Total revenue
Total cost
Marginal cost
Marginal revenue
Correct Answer:
Marginal revenue
Explanation:
In perfect competition, demand curve and AR and MR curve are same and are in the form of a horizontal straight line parallel to the x-axis.