What is the relation between (i) Market price and AR of a price taking firm ? (ii) Market price and MR of a price taking firm ?

What is the relation between (i) Market price and AR of a price takin

1.	What is the relation between (i) Market price and AR of a price taking firm ? (ii) Market price and MR of a price taking firm ?
Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :(i) AR <a href="https://interviewquestions.tuteehub.com/tag/equals-974070" style="font-weight:bold;" target="_blank" title="Click to know more about EQUALS">EQUALS</a> the market <a href="https://interviewquestions.tuteehub.com/tag/price-1165141" style="font-weight:bold;" target="_blank" title="Click to know more about PRICE">PRICE</a>, as `AR=(<a href="https://interviewquestions.tuteehub.com/tag/tr-661737" style="font-weight:bold;" target="_blank" title="Click to know more about TR">TR</a>)/<a href="https://interviewquestions.tuteehub.com/tag/q-609558" style="font-weight:bold;" target="_blank" title="Click to know more about Q">Q</a>` <br/> Hence `AR=(Pxx Q)/Q "" ( :. TR=PxxQ)` <br/> AR=Price <br/> (ii) As price remains constant, TR increases at the same rate. Hence price/AR=MR</body></html>