Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Firms under Perfect Competition

Question:
Which of the following is true for perfect competition-
a) Total Revenue (TR) increases at increasing rate then increases at decreasing rate then falls.
b) Price = Marginal Revenue.
Options:
Both a and b are true
a is true, b is not
b is true, a is not
Both a and b are false
Correct Answer:
b is true, a is not
Explanation:
TR rise at constant rate.