Suppose that a firm's total revenue function is defined as TR = 200Q - 20Q². What is average revenue equal to when 1 unit of output is produced? A) 180 B) 20 C) 200 D) 220

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Quizplus · Accepted Answer

Average revenue is equal to total revenue divided by quantity. When 1 unit of output is produced, total revenue is 200 - 20 = 180. Therefore, average revenue is 180 / 1 = 180.

Suppose That a Firm's Total Revenue Function Is Defined as TR