The average revenue curve is equal to a. The product's price b. The total revenue curve c. The product's demand function c. The marginal revenue curve
The average revenue curve is equal to
a. The product's
b. The total revenue curve
c. The product's
c. The marginal revenue curve
The amount of money earned per unit of output is referred to as average revenue. To put it another way, it's the profit a seller makes on each unit of a commodity sold.
The overall revenue of a company is divided by the total output to get the average revenue. Because profit is derived by subtracting average revenue from average cost, average revenue might assist in calculating a company's profit. The link between average revenue and the amount of items produced is determined by the market structure. The average revenue is equal to the price plus the marginal revenue in a perfectly competitive firm. In monopolistic or oligopolistic businesses, however, average revenue always exceeds marginal revenue.
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