Average revenue (AR) for an individual firm in a perfectly competitive market equals
A) Oq/Op.
B) (p × q)/q.
C) Op × Oq.
D) p × q.
E) O(p × q)/Oq.

Name: Average revenue (AR) for an individual firm in a perfectly competitive market equals A) Oq/Op. B) (p × q)/q. C) Op × Oq. D) p × q. E) O(p × q)/Oq.
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Question

Quizplus · Accepted Answer

In a perfectly competitive market, average revenue (AR) is equal to the price (p) of the good, which can be calculated as total revenue (p × q) divided by quantity (q), simplifying to p.

Average Revenue (AR) for an Individual Firm in a Perfectly