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The theory of the firm under perfect competition — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsThe theory of the firm under perfect competition1 Mark
Question
Giving reasons, state whether the following statement are true or false.
When marginal revenue falls to zero, average revenue becomes maximum.
✓

Answer

False.
Explanation:
It is so because in case of the marginal revenue is zero the average revenue should be diminishing.

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