CBSE BoardEnglish MediumSTD 11 CommerceEconomicsMICROECONOMICS CH : 9 CONCEPT OF REVENUE2 Marks
Question
Average revenue is the same as market price of the commodity. Comment.
✓
Answer
Yes. We know that, $ A R=\frac{T R}{Q} $ We also know that, $T R=P \times Q$ (where $P=$ Price, and $Q=$ Quantity or output sold.) Relating the two equations, we can write that: $ A R=\frac{T R}{Q}=\frac{P \times Q}{Q}=P $ Hence, firm's average revenue means price of the product corresponding to a given level of output. $ \text { Or, } A R=\text { Price } $
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.