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)

Define the shift in demand curve, Define the shift in demand curve To p...

Define the shift in demand curve To put it differently, demand for a commodity means entire demand schedule that demonstrates the varying amounts of goods purchased at alternat

Difference between a static budget and a flexible budget, 1.  What is the d...

1.  What is the difference between a static (master) budget and a flexible budget? Ans:  static budget is where a budget doesn't change a volume changes.  An example could be th

New york offers the payout, Lots of states have scratch offs with various d...

Lots of states have scratch offs with various different monetary payoffs. For example, the "$500 a week for life" in New York offers the payout and odds structure noted below.

Inflation is not possible under the gold standard, "Inflation is not possib...

"Inflation is not possible under the gold standard." Is this declaration true, false, or uncertain? Describe your answer

Economics of population, The Economics of Population Population issues...

The Economics of Population Population issues became matters of economic concern when it became increasingly apparent that the problem of excess population may be a serious ob

Public Debt, what are the Sources of public debt

what are the Sources of public debt

Types of elasticity, what are the examples of the types of elasticity (pri...

what are the examples of the types of elasticity (price,income & cross elaticity

What are the environmental issues factors, Environmental issues factors ...

Environmental issues factors This is governed by the below factors:  The type of economic system of the country Business cycles Industrial policy of the countr

Define the simple statistical concepts of average, Define the simple statis...

Define the simple statistical concepts of average Simple statistical concepts of average (mean) and standard deviation are used.  Estimating a relationship among variables need

Caselet, plot the demand schedule and draw the demand curve for the data gi...

plot the demand schedule and draw the demand curve for the data given for marijuana in the case above

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