Advertisements
Advertisements
Questions
Which concept of revenue is called ‘price’?
What revenue concept is also called ‘price’? Explain.
Explain
Short Answer
Advertisements
Solution
- The concept of revenue that is called ‘price’ is Average Revenue (AR).
- Average revenue is the revenue earned per unit of output sold.
- In most cases, especially under perfect competition, AR = price of the commodity.
- So, average revenue is also known as price.
shaalaa.com
Notes
Students should refer to the answer according to the question.
Is there an error in this question or solution?
