Table 14-2

-Refer to Table 14-2.Over which range of output is average revenue equal to price?

Question

Table 14-2
 
-Refer to Table 14-2.Over which range of output is average revenue equal to price?

Quizplus · Accepted Answer

Average revenue is equal to price over the entire range of output. This is because average revenue is calculated by dividing total revenue by the quantity sold, and since price is constant for this firm, dividing total revenue by quantity sold will always give the same price. Therefore, average revenue is equal to price for all levels of output.

Table 14-2 -Refer to Table 14-2.Over Which Range of Output Is Average