PRC-3 · Chapter 12 · Question 57 of 69
By substituting the Total Revenue (TR) equation into the Average Revenue (AR) formula, we mathematically observe that AR is always equal to:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Product Price
Explanation
Since TR = Price x Quantity, dividing TR by Quantity gives Average Revenue, which simplifies directly back to the Price of the product.
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