ECONOMICS
PROFIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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price per unit
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TR/Output
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the extra revenue received as a result of selling one more unit of output
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Total revenue less marginal revenue
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Detailed explanation-1: -Average revenue is the revenue earned per unit of output sold in the market. It is identical to the price of the output produced.
Detailed explanation-2: -Thus, AR is always equal to price.
Detailed explanation-3: -Average revenue = Total revenue / quantity of units or users. Revenue refers to all the money a company earns during a specific time period. Companies can calculate valuable information about revenue when they use the average revenue formula, which is like finding the mathematical average of any set of numbers.
Detailed explanation-4: -Average revenue (AR) and price always equal under all market forms. As we know that AR is equal to per unit sale receipts and price is always per unit. This is because the sellers receive revenue according to price.
Detailed explanation-5: -Average Revenue refers to the revenue per unit of output sold. Thus, it is proved that AR = Price.