Multiple choice

The revenue curve in case of perfect competition is

  1. parallel to OX-axis

  2. parallel to OY-axis

  3. downward sloping

  4. upward sloping

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The AR and MR curve is perfectly elastic and parallel to OX-axis in case of perfect competition. It is downward sloping in case of monopolistic competition.