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  Nature of Revenue curves

Nature of Revenue curves:

Beneath perfect competition, the market price is determined by the market forces that are, the demand for and the supply of the products. Therefore there is uniform price in the market and every units of the output are sold at similar price. As an outcome the average revenue is perfectly elastic. Average revenue curve is horizontally parallel to the X-axis. As the Average Revenue is steady, Marginal Revenue is too constant and coincides with Average Revenue. AR curve of a firm symbolizes the demand curve for the product generated by that firm.

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