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    Question

    When AR is constant, MR is

    A less than AR Correct Answer Incorrect Answer
    B equals to AR Correct Answer Incorrect Answer
    C more than AR Correct Answer Incorrect Answer
    D zero Correct Answer Incorrect Answer

    Solution

    (i) When AR is constant, it is equal to MR under perfect competition.  (ii) When AR is diminishing, MR also diminishes but AR diminishes at a faster rate as in the case of monopoly and monopolistic competition

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