Complete the following table, Graph AR and MR and explain the relation between AR and MR curve.

Average revenue (AR) is the revenue per unit (AR = TR/Q = price, so the AR curve is the firm's demand curve) and marginal revenue (MR) is the revenue from selling one more unit, and the way the two curves relate depends on the market structure.

1. Under perfect competition: price is constant because the firm is a price taker, so AR is a horizontal straight line and MR coincides with it — that is, AR = MR = price, and both are perfectly elastic.
2. Under imperfect competition: the firm must lower its price to sell more, so AR (the demand curve) slopes downward from left to right.
3. MR falls faster than AR: when AR is a downward-sloping straight line, MR is also a straight line but falls twice as steeply as AR.
4. MR lies below AR: because price must be reduced on all units to sell an extra one, MR is always below AR under imperfect competition.
5. The bisecting rule: MR cuts any horizontal line drawn from the AR curve to the Y-axis exactly at its midpoint (MR bisects the distance).
6. Link with total revenue: MR is positive while TR is rising, becomes zero when TR is maximum, and turns negative once TR begins to fall.

Thus, under perfect competition AR and MR are one and the same horizontal line, while under imperfect competition AR slopes down and MR lies below it, falling twice as fast.