Average revenue (ar), Managerial Economics

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.

Posted Date: 11/28/2012 4:59:46 AM | Location : United States







Related Discussions:- Average revenue (ar), Assignment Help, Ask Question on Average revenue (ar), Get Answer, Expert's Help, Average revenue (ar) Discussions

Write discussion on Average revenue (ar)
Your posts are moderated
Related Questions
Let Consider an economy with three states. The following set of stocks is traded:     x 1 =(2,2,0)    x 2 =(1,0,3)  x 3 =(0,2,4).          The t=0 prices of these stocks are give

Dynamics  of Unemployment and  Real  Wages through Productivity Shocks   The model  that you  are  studying here  is  in  the  tradition of  the  real  business cycle theory th

DIRECT TAXES A direct tax is one where the impact and incidence of the Tax is on the same person e.g. Income Tax, death or estate duty, corporation taxes and capital gains

income generation process through investment multiplier

1. Explain the industry and describe the general pattern of change of the particular market model. 2. Hypothesize the basic short-run and long-run behaviours of the model in the

Uses of Indifference Curve Analysis Indifference curve analysis is useful when studying welfare economics as follows: They are used to indicate the amount of income and

how to solve problems using derivatives ?

FACTORS RESPONSIBLE FOR WAGE DIFFERENTIALS WITHIN THE SAME OCCUPATION i.     Differences in the environment:   For example a doctor sent to North Eastern Province must be pai

Describe about regression analysis An illustration from the automobile industry is befitting for explaining the forecasting method that uses simple regression analysis. Let's p

Factors influencing demand for a product These are broadly divided into factors determining household demand and factors affecting market demand . Factors affecting hou