A separate average revenue curve is not required when you have the demand curve for a firm. Explain.
What will be an ideal response?
Demand curve itself is the average revenue curve of a firm, because the product price is the average revenue that the firm receives.By definitionTR = P * QAR = (P * Q) / QAR = TR / Q = (P * Q) / Q = P
You might also like to view...
Diseconomies of scale definitely means that as the firm increases its output, its
A) long-run average total cost increases. B) long-run average total cost decreases. C) short-run average total cost increases. D) short-run average total cost decreases.
Suppose you buy 100 shares of 3M at $86 a share and sell all shares one year later for $99 a share. During the year, you earned a dividend of $2.10 a share. What was your rate of return? Report your answer in percentages with one decimal point
What will be an ideal response?