1
Question
Demand price is identical with __________.
Demand price is identical with __________.
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Solution
The correct option is C AR
Average revenue refers to the revenue per unit of output
sold. It is obtained by dividing the total revenue by the number of units. AR
is equal to per unit sale receipts and price is always per unit. Since sellers receive
revenue according to the price, price and AR are one and the same thing.
TR= Quantity * Price
AR= TR/ Quantity
AR= (Quantity * price)/ quantity
AR= Price
Average revenue refers to the revenue per unit of output sold. It is obtained by dividing the total revenue by the number of units. AR is equal to per unit sale receipts and price is always per unit. Since sellers receive revenue according to the price, price and AR are one and the same thing.
TR= Quantity * Price
AR= TR/ Quantity
AR= (Quantity * price)/ quantity
AR= Price
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