For any firm, price always equals
A)average revenue.
B)marginal revenue.
C)marginal cost.
D)marginal profit.

Question

Quizplus · Accepted Answer

Price always equals average revenue because price is the amount that a firm receives per unit of output sold, and average revenue is the total revenue divided by the quantity sold. Thus, the two are equivalent. Marginal revenue, marginal cost, and marginal profit all refer to changes in revenue, cost, or profit based on changes in quantity, whereas price and average revenue are measures of the unit price of output sold.

For Any Firm, Price Always Equals