State, with valid reasons, which of the following statement are true or false:
State, with valid reasons, which of the following statement are true or false:
(a) Average Revenue curve under the Perfect Competition is a downward sloping curve.
(b) AFC curve is a rectangular hyperbola curve.
(c) When MR is falling but positive, TR will also be falling and positive.
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(a) False: Since the firm under Perfect Competition is a price taker, AR curve will be a straight line parallel to x-axis.
(b) True: Since TFC remains unchanged/constant.
(c) False: When MR is falling but positive. TR will be rising.
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