Q. If the average revenue is a horizontal straight line, what will be the marginal revenue?
Answer: Identical with average revenue
Notes: The price of a commodity is also called the average revenue of the firm. Average revenue (AR) or price and marginal revenue (MR) are the same. When the former is constant, the latter is also stable. Furthermore, the average revenue curve of a firm is similar to the individual demand curve. Therefore, the competitive demand curve is a horizontal straight line parallel to the OX axis.

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