Average is revenue is equal to?
Answers
Answer:
Market structure determines the relationship between average revenue and quantity of goods produced. In a perfectly competitive firm, average revenue is equal to the price and marginal revenue.
GDP Deflector Formula: Price Elasticity
Elastic Demand Formula: Marginal Revenue
Explanation:
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Answer:
Market structure determines the relationship between average revenue and quantity of goods produced. In a perfectly competitive firm, average revenue is equal to the price and marginal revenue.
GDP Deflator Formula: Price Elasticity of Demand Formula
Elastic Demand Formula: Marginal Revenue Formula
Consumer Price Index Formula: Real GDP Formula
Average revenue (AR), is revenue per unit, and is found by dividing TR by the quantity sold, Q. AR is equivalent to the price of the product, where P x Q/Q = P, hence AR is also price.