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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 competition4 Marks
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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