Practicing Success
Practicing Success
CUET Preparation Today
| Read the following statements about perfectly competitive market carefully. Statement 1: Demand curve is perfectly inelastic in a perfectly competitive market. Statement 2: AR curve and demand curve are not the same. |
Both the statements are true Both the statements are false Statement 1 is true and Statement 2 is false Statement 2 is true and Statement 1 is false |
| Both the statements are false |
| Under perfect competition, the demand curve is perfectly ELASTIC. This means that a firm can sell as many units of the good as it wants to sell at price P. Also, the AR curve and demand curve ARE THE SAME in perfectly competitive market. |
