Assertion (A): The AR curve of a firm is its demand curve.
Reason (R): AR equals the price at which each quantity can be sold.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Both are true, and R explains A: a curve of the price at each quantity is the demand curve facing the firm.

Concept: AR as the demand curve
Typical timeTypical: 70 s
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The rule this testsTotal, average and marginal revenue

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Assertion (A): The AR curve of a firm is its demand curve.Reason (R): AR equals the price at which each quantity can be sold.

Explanation

Assertion (A): The AR curve of a firm is its demand curve.
Reason (R): AR equals the price at which each quantity can be sold.