Question

revenue per unit of outputis know as a.average revenue b.marginal revenue c.none​

Answer 1

Answer:

A. Average Revenue

Revenue per Unit of Output is known as Average Revenue.

• It is calculated by dividing TR by quantity of output sold.

$\sf AR = \frac{TR}{q} = \frac{p \times q}{q} = p$

AR is equal to price. Therefore, price line and AR curve are one and the same. That is why AR curve and demand Curve of a firm under perfect competition are also one and the same.

Total Revenue :

The amount of money a production unit gets by selling all its output is called Total Revenue.

Marginal Revenue :

MR is the addition to the total revenue when an additional unit of output is sold.