Answer: Option B
Answer: (b)
Average revenue is the revenue per unit of the commodity sold. It can be obtained by dividing the TR by the number of units sold.
Then, AR = TR/Q AR.
In other words, it means price.
Since the demand curve shows the relationship between price and the quantity demanded, it also represents the average revenue or price at which the various amounts of a commodity are sold, because the price offered by the buyer is the revenue from the seller’s point of view. Therefore, the average revenue curve of the firm is the same as the demand curve of the consumer.