Asked by Ashly De Jesus on Jul 28, 2024
Verified
Refer to Table 14-1. Over which range of output is average revenue equal to price?
A) 2 to 10 units
B) 6 to 14 units
C) 10 to 18 units
D) Average revenue is equal to price over the entire range of output.
Average Revenue
The revenue received per unit of output sold.
Quantity Demanded
The amount of a product that consumers are willing and able to purchase at a given price.
Price
Price is the amount of money expected, required, or given in payment for something, reflecting the value of goods or services in monetary terms.
- Distinguish between mean income, incremental revenue, and their significance in maximizing profits for companies.
Verified Answer
HN
Huzaif NaeemJul 31, 2024
Final Answer :
D
Explanation :
Average revenue is calculated as total revenue divided by quantity sold. Since price remains constant at $5 per unit regardless of the quantity demanded, average revenue equals the price of $5 across all quantities, meaning it is equal to price over the entire range of output.
Learning Objectives
- Distinguish between mean income, incremental revenue, and their significance in maximizing profits for companies.
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