Price is equal to:
A)marginal revenue divided by the quantity sold.
B)total revenue divided by average revenue.
C)total revenue divided by the quantity sold.
D)the quantity sold divided by total revenue.

Question

Quizplus · Accepted Answer

Price is the amount of money a consumer pays for a product or service, which is equivalent to the total revenue generated by the seller (price x quantity sold). Therefore, to determine the price, we can divide the total revenue by the quantity sold, which is option C. Option A is incorrect because it calculates marginal revenue, which is the change in revenue when one additional unit is sold. Option B is incorrect because it divides total revenue by average revenue, which is not a relevant calculation for determining the price. Option D is incorrect because it divides the quantity sold by total revenue, which doesn't result in a price measurement.

Price Is Equal To