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)

Construction of an explanatory model, Q. Construction of an explanatory mod...

Q. Construction of an explanatory model? Construction of a sample:   To apply multiple regression a large sample is generally essential (ideally between 2,000 to 15,000 indivi

Oligopoly theory, in the context of oligopoly theory explain the channels v...

in the context of oligopoly theory explain the channels via which either a cost reduction or a quantity increase influence a supplier''s profitability

Cost concepts, Ask question #MinimumElectron Control, Inc., sells voltage r...

Ask question #MinimumElectron Control, Inc., sells voltage regulators to other manufacturers, who then customize and distribute the products to quality assurance labs for their sen

#Principles and Practicices of Management, How will you influence people to...

How will you influence people to strive willingly for group objective in your organization (target based industry)? Apply your interpersonal influence through communication process

Principles of an optimal tax system, PRINCIPLES OF AN OPTIMAL TAX  SYSTEM ...

PRINCIPLES OF AN OPTIMAL TAX  SYSTEM When taxes are imposed certain conditions must be fulfilled.  These conditions are known as Principles or canons of taxation. According to

What is normative economics, What is Normative economics It is concerne...

What is Normative economics It is concerned with varied corrective measures that a management undertakes under lots of circumstances. It deals with goal determination, goal dev

What is the equilibrium in the labor market, What is the equilibrium in the...

What is the equilibrium in the labor market? Explain briefly. Equilibrium in the Labor Market a. The market labor of demand curve is the horizontal total of the individual l

Internal rate of return - incremental analysis, The following contains cost...

The following contains cost and benefit information for two different alternatives for a w capital investment in computerized process technologies to control the process at a manuf

Cross elasticity, Cross Elasticity Cross elasticity of demand measures...

Cross Elasticity Cross elasticity of demand measures the degree of responsiveness of the quantity demanded of one good (B) to changes in the price of another good (A).  It is

Definition of oligopoly, Mrs John Robinson- 'Oligopoly is market situation ...

Mrs John Robinson- 'Oligopoly is market situation in between monopoly and perfect competition in which the number of sellers is more than one but is not so large that the market pr

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