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The theory of the firm under perfect competition — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsThe theory of the firm under perfect competition3 Marks
Question
Define Average Revenue. Show that Average Revenue and Price are same.
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Answer

Average revenue refers to revenue per unit of commodity. Total Revenue Average Revenue $=\frac{\text{Total Revenue}}{\text{Units of output sold}}$ Total Revenue = Price × Units of output sold,This show that AR and price are always same:
Price (₹) Units sold TR AR
10 1 10 10
10 2 20 10
10 3 30 10
10 4 40 10
From the given schedule, we can say that AR is always equal to price.

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