Multiple Choice Questions on What does average revenue AR represent for a price taking firm ........ for Common University Entrance Test (CUET) Preparation

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Multiple Choice Questions

What does average revenue AR represent for a price taking firm ........

Economics (CUET) Theory of firm under perfect Competition
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    What does average revenue (AR) represent for a price-taking firm?
    The same as total revenueIncorrect Answer
    Market price per unit of outputCorrect Answer
    Total cost per unit of outputIncorrect Answer
    Sum of all revenuesIncorrect Answer
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    Explanation:

    For a price-taking firm, average revenue (AR) is the market price per unit of output.

    AR = TR/q, and since TR = p × q, AR = p.

    By: Parveen Bansal
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