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Give relation between TR and MR when price falls with rise in output (ii) AR and MR when price falls with rise in output. |
Answer» <html><body><p></p>Solution :(i) When MR is <a href="https://interviewquestions.tuteehub.com/tag/falling-983241" style="font-weight:bold;" target="_blank" title="Click to know more about FALLING">FALLING</a> positively, TR increases but at a decreasing rate.<br/>When TR is maximum and constant, MR is equal to zero.<br/>When TR starts falling, MR becomes negative.<br/>(ii) <a href="https://interviewquestions.tuteehub.com/tag/ar-380980" style="font-weight:bold;" target="_blank" title="Click to know more about AR">AR</a> falls when MR `lt` AR.<br/>MR curve is steeper than the AR curve.<br/>MR can <a href="https://interviewquestions.tuteehub.com/tag/fall-983217" style="font-weight:bold;" target="_blank" title="Click to know more about FALL">FALL</a> to zero but AR is always <a href="https://interviewquestions.tuteehub.com/tag/positive-1159908" style="font-weight:bold;" target="_blank" title="Click to know more about POSITIVE">POSITIVE</a>.</body></html> | |