The monopolists average revenue can be defined as:

Question

Quizplus · Accepted Answer

Average revenue is defined as the total revenue per unit of output. Therefore, the correct definition of monopolist's average revenue is total revenue per unit of output. Option A is incorrect because it defines total revenue per unit of average revenue, which is not a meaningful concept. Option C defines average revenue per unit of input, which is not relevant to a monopolist's revenue. Option D is an incomplete answer and unclear what it means. Average revenue is the total revenue divided by the quantity sold. Since the monopolist is the sole supplier in the market, its total revenue is equal to the price it charges multiplied by the quantity sold. Therefore, the monopolist's average revenue can be defined as total revenue per unit of output. Hence, option B is the correct choice.

The Monopolists Average Revenue Can Be Defined As