Average revenue is equal to
A)TR/Q.
B)(P × Q)/P.
C)TR × Q.
D)All of the responses are correct.

Question

Quizplus · Accepted Answer

Average revenue is defined as total revenue divided by the quantity of output sold. Therefore, option A, TR/Q, accurately represents average revenue. Option B, (P x Q)/P, simplifies to just Q, which is not a correct representation of average revenue. Option C, TR x Q, is not a valid representation of average revenue as it does not take into account the quantity of output sold. Therefore, the correct choice is A.

Average Revenue Is Equal to