Question
Define Average Revenue. Show that Average Revenue, and Price are same.

Answer

Average revenue equals Total Revenue divided by the output produced.

$\text{TR}=\text{P}\times\text{Q}$

$\text{AR}=\frac{\text{TR}}{\text{Q}}$ And,

$\text{AR}=\frac{\text{P}\times\text{Q}}{Q}=\text{P}.$

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