Question

why average revenue alwys equal to price 4 marks​

Answer 1

Answer:

Average revenue is always equal to price

Explanation:

Average revenue (AR) is defined as the revenue earned per unit of input sold AR is the same as the price (P) of the output(Q). Algebraically it came be expressed as

AR= TR/Q where TR is the total revenue

AR=P×Q/Q

AR=P

Therefore, Average revenue is always equal to the price of the output