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Question
What is the price line?
Solution
Price line is the graphical representation of the relationship between output and price, with x-axis denoting the output and y-axis denoting the price. For a perfectly competitive firm, price line and demand curve are the same.
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Calculate the total revenue, marginal revenue and average revenue schedules in the following table. Market price of each unit of the good is Rs 10.
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Quantity Sold |
TR |
MR |
AR |
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0 |
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1 |
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2 |
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3 |
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4 |
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5 |
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6 |
