Question
The price of a commodity is the same as
Answer: Option D
Answer: (d)
Average Revenue refers to revenue received per unit of output sold. It is the same as the Price of the commodity. Average revenue can be obtained by dividing the total revenue by the number of units sold.
Thus, Average Revenue (AR) = $\text"Total Revenue (TR)"/\text"Quantity sold (Q)"$
When we take the case of a single commodity,
TR = P × Q
So, AR= ${P × Q}/Q$ = P,
where P = Price of the commodity
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Answer: (d)
Average Revenue refers to revenue received per unit of output sold. It is the same as the Price of the commodity. Average revenue can be obtained by dividing the total revenue by the number of units sold.
Thus, Average Revenue (AR) = $\text"Total Revenue (TR)"/\text"Quantity sold (Q)"$
When we take the case of a single commodity,
TR = P × Q
So, AR= ${P × Q}/Q$ = P,
where P = Price of the commodity
Was this answer helpful ?
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