Average revenue (ar), Managerial Economics

Assignment Help:

Average Revenue (AR)

This is the revenue per unit of the commodity sold.  It is obtained by dividing Total Revenue by total quantity sold.  For a firm in a perfectly competitive market, the AR is the same as price.  Therefore, if price is denoted by P, then we can say:

P = AR

Because of this, the demand curve which relates prices to quantities demanded at those prices is also called Average Revenue Curve.  In economic theory, the demand curve or price line is often referred to as the revenue curve.


Related Discussions:- Average revenue (ar)

Financial globalization and economic growth, Question 1: Either ‘Tod...

Question 1: Either ‘Today the business organizations are quite different from the traditional classical firm with a wide range of objectives.' Discuss the above statement

Long run output, LONG RUN OUTPUT In the LR whether or not the firm mak...

LONG RUN OUTPUT In the LR whether or not the firm makes profit will depend on the conditions of entry.  For example, when surplus profits exist, there will be new entrants bec

Arc elasticity, Arc Elasticity Is the average elasticity between two g...

Arc Elasticity Is the average elasticity between two given points on the curve, i.e. Because of the negative relationship between price and quantity demanded, pr

What do you mean by cost function, Q. What do you mean by Cost Function? ...

Q. What do you mean by Cost Function? Cost function is a derived function. It's derived from the production function that describes the efficient method of production at any gi

Mba assignment, what is the role of managerial economics in running a busin...

what is the role of managerial economics in running a business?

Government spending multiplier, Now, let's modify our model a bit. Let's ad...

Now, let's modify our model a bit. Let's add a fourth sector of spending so that Y = C + I + G + X n with X = X o and M = M = f (Y). Will this change, by itself, increase, decrea

Theories of the firm, Define Williamson''s Model of Managerial Discretion p...

Define Williamson''s Model of Managerial Discretion practice?

Economics for accountants, Economics for Accountants A few teachers an...

Economics for Accountants A few teachers and some students have questioned the rationale for including economics in a course of study for professional accountants. In order to

Significance of concept and theory of search unemployment, SIGNIFICANCE  ...

SIGNIFICANCE  OF  THE  CONCEPT  AND THEORY OF SEARCH UNEMPLOYMENT   From what has been  said earlier, you understand the significance of the theory of search  unemployment  as

What is internal diseconomies of scale, Q. What is Internal Diseconomies of...

Q. What is Internal Diseconomies of Scale? Internal economies of scale exist only up to a certain size of the plant. Size of plant is called the optimum plant size since with t

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd