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

Question

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

Quizplus · Accepted Answer

Average revenue is defined as the revenue generated per unit of output or sales. Therefore, option A, TR/Q, is the correct formula to calculate it. Option B is incorrect because it is simply a formula to calculate price (P) and not average revenue. Option C is incorrect because it is not a valid formula for average revenue.

Average Revenue Is Equal to