Question

7. What is the relationship between Average revenue and Price?​

Answer 1

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To obtain average revenue (AR), we divide total revenue by quantity, Q. Because total revenue equals price (P) times quantity (Q), dividing by quantity leaves us with price. The marginal revenue curve is a horizontal line at the market price, and average revenue equals the market price

Answer 2

Explanation:

To obtain average revenue (AR), we divide total revenue by quantity, Q. Because total revenue equals price (P) times quantity (Q), dividing by quantity leaves us with price. The marginal revenue curve is a horizontal line at the market price, and average revenue equals the market price