What is average revenue monopoly?
AVERAGE REVENUE, MONOPOLY: The revenue received for selling a good per unit of output sold, found by dividing total revenue by the quantity of output. Average revenue often goes by a simpler and more widely used term price. For a monopoly average revenue is greater than marginal revenue.Click to see full answer. Also asked, what…
AVERAGE REVENUE, MONOPOLY: The revenue received for selling a good per unit of output sold, found by dividing total revenue by the quantity of output. Average revenue often goes by a simpler and more widely used term price. For a monopoly average revenue is greater than marginal revenue.Click to see full answer. Also asked, what is equal to the average revenue?Average revenue is the revenue generated per unit of output sold. It plays a role in the determination of a firm’s profit. Per unit profit is average revenue minus average (total) cost. A firm generally seeks to produce the quantity of output that maximizes profit.Also, what is the another name of average revenue curve? Demand curve is the other name that is given to the average revenue curve. Average revenue curve is often called the demand curve due to its representation of the product’s demand in the market. Moreover, is average revenue equal to demand? Average revenue is nothing but Total Revenue divided by Quantity and total Revenue is nothing but Price multiplied by quantity of output. Each point on the curve represents the price of the product in the market. Price determines the demand for a product, hence Average revenue curve is also demand curve.What is average revenue and marginal revenue?Average Revenue (AR) = price per unit = total revenue / output. The AR curve is the same as the demand curve. Marginal Revenue (MR) = the change in revenue from selling one extra unit of output. Total Revenue (TR) = Price per unit x quantity.
