In the case of a linear demand curve,average revenue is equal to price,while (with the exception of Q = 1)marginal revenue is less than price.

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In a linear demand curve, the slope is constant and therefore both average revenue and price will be equal. However, because the slope is downward sloping, producing an additional unit will require reducing the price of all units sold so far, leading to a lower marginal revenue than the price. This exception occurs when quantity sold is one unit, as there are no previous units to reduce the price for.

In the Case of a Linear Demand Curve,average Revenue Is