what is the exact  relationship between AR and MR?Plz tryhelp..

The relationship between AR and MR can be studied under two forms of market- under Perfect Competition market and under Imperfect Competition market. 

Under Perfect Competition market, AR equals MR throughout all output levels. Graphically, MR curve is a straight horizontal line parallel to the x-axis and coincides with the AR curve.

Under Imperfect Competition market, as output increases both AR and MR fall. However, AR remains greater than MR at all levels of output. Graphically, both AR curve and MR curve are downward sloping but the AR curve remains above the MR curve.

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When AR is constant, AR=MR.

When AR is diminishing, AR>MR. 

MR can be negative but not AR. 

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