Draw the AR curve of a firm under (i) Monopoly and (ii) Perfect competition. Explain the difference in these curves, if any.

Draw the AR curve of a firm under (i) Monopoly and (ii) Perfect compet

1.	Draw the AR curve of a firm under (i) Monopoly and (ii) Perfect competition. Explain the difference in these curves, if any.
Answer» Solution : DEFFERENCE. AR curve in perfect COMPETITION is perfectly elastic due to uniformity in price WHEREAS in monopoly, it is less elastic and downward sloping due to reduction in price.