AR is always more than TR. - Vidyadip

Question

AR is always more than TR.

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Answer

No, I do not agree with this statement.

TR or Total Revenue refers to total income earned by a firm from the sale of a given quantity of a commodity in the market of different price. It is derived by Price x l Quantity sold.
AR or Average Revenue refers to the income earned per unit of a commodity sold. It is derived by TR Quantity sold.
Hence, TR will always be greater than AR.
Hence, the above statement is false.

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