Answer:
Average Revenue (AR) is defined as the revenue earned per unit of output sold. AR is the same as the price (P) of the output (Q). Algebraically, it can be expressed as follow: \[AR=TR/Q\], where TR is total revenue, \[TR=P\text{ }\times \text{ }Q\] \[AR=\frac{P\,\,\times \,\,Q}{Q}\Rightarrow AR=P\] Thus, AR is always equal to the price of the output.
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