In a firm, AR = MR = ₹ 5 at each level of output. What does it tell about : (i) Nature of Demand Curve, (ii) Rate of increase in TR, and (iii) Shape of TR curve ?

On the basis of given diagram, answer the following question: (i) Identify the three short-run cost curves. (ii) Why all the three curves are U-shaped ? (iii) Why does the distance between curve A and curve B fall with rise in output ? Will they coincide at any level of output? (iv) Why does the minimum point of curve A lie to the right of minimum point of curve B.

A perfectly competitive firm sells at market price equal to Rs 15 (i) Derive its TR schedule for rings of output from 0 to 10 units. (ii) Suppose, market price increases to Rs 17 . Will the new TR curve the be flatter or steeper ?