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.
Q. The AR curve and industry demand curve are identical
β
Correct Answer: (D)
in case of perfect competition
Explanation by: Mr. Dubey
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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