What is the shape of Average Revenue (AR) curve under perfect competition? Option 1: Horizontal straight line. Option 2: Vertical straight line. Option 3: Rectangular hyperbola. Option 4: Downward to the right.

The answer is 'Horizontal straight line.'. View full solution:

CUET Economics - What is the shape of Average Revenue (AR) curve under perfect competition? | PYQs + Solutions

CUET Economics 2025 2 June Shift 1

Micro

Medium

Horizontal straight line.

Vertical straight line.

Rectangular hyperbola.

Downward to the right.

✅ Correct Option: 1

Related questions:

14 May Shift 1

Arrange the following statements related to negative externalities in correct sequence

(A) There is an oil refinery which refines crude petroleum and sells it in the market

(B) Pollution harms well-being and also kills fish or other organisms

(D) Such harmful effects that the refinery is inflicting on others, for which it will not bear any cost, are called externalities

3 June Shift 2

A perfectly competitive market in an economy is categorized by the following features.

(A) Firms are price-takers.

(B) Average revenue is equal to market price.

(D) Marginal revenue is equal to market price.

Choose the correct answer from the options given below:

13h May Shift 2

Match List-I with List-II

List-I	List-II
(A) Price-takers	(I) Break-even point.
(B) Price less than minimum point of AVC curve	(II) Normal profit.
(C) A firm earns normal profit	(III) Perfectly Competitive Market.
(D) A firm covers the explicit costs and opportunity costs	(IV) Shut down point.

Choose the correct answer from the options given below: