Prove that area under AR (and MR) curve is equal to total revenue is case of perfect competition.

Prove that area under AR (and MR) curve is equal to total revenue is c

1.	Prove that area under AR (and MR) curve is equal to total revenue is case of perfect competition.
Answer» Solution :In case of perfect competition AR is constant, therefore AR =MR. AR curve is horizontal straight line which represents the value of different LEVELS of output at uniform price. In the diagram, price (EQUAL to OP) is constant and given output is OQ. TR =P X Q =OP x OQ =AREA of OQEP