Assertion (A) : The rate of fall of MR Curve is more than twice the rate of fall of AR. Reason (R) :…
The assertion is false, while the reason is true. For a linear average-revenue curve \(AR=a-bQ\), total revenue is \(aQ-bQ^2\) and marginal revenue is \(MR=a-2bQ\), so MR…
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Assertion (A) : The rate of fall of MR Curve is more than twice the rate of fall of AR.
Reason (R) : The MR & AR Curves are linear and negatively sloped.
Answer and explanation
Correct answer D
The assertion is false, while the reason is true. For a linear average-revenue curve , total revenue is and marginal revenue is , so MR falls exactly twice as fast as AR, not more than twice as fast.
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Tamil Nadu SET (TNSET)