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प्रश्न
What is the relation between market price and average revenue of a price taking firm?
उत्तर
Average Revenue is defined as the revenue per unit of the output sold. It is expressed as the ratio between total revenue and the output sold.
`"AR"="TR"/Q`
We know that
TR = P × Q
`"AR"=(PxxQ)/Q`
AR = P
Thus, the market price and the average revenue are the same for a perfect competitive firm.
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संबंधित प्रश्न
How are the total revenue of a firm, market price, and the quantity sold by that firm related to each other?
What is the price line?
Why is the total revenue curve of a price-taking firm an upward-sloping straight line? Why does the curve pass through the origin?
What is the relation between market price and marginal revenue of a price-taking firm?
Calculate the total revenue, marginal revenue and average revenue schedules in the following table. Market price of each unit of the good is Rs 10.
|
Quantity Sold |
TR |
MR |
AR |
|
0 |
|||
|
1 |
|||
|
2 |
|||
|
3 |
|||
|
4 |
|||
|
5 |
|||
|
6 |
