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For a price taking firm, average revenue is ______ market price. Options: 1) half of 2) equal to 3) double of 4) less than

Posted by bhavishya kumar at 27 Sep 17 12:46:21pm

Correct Answer: equal to

the marginal revenue for each unit sold is equal to the price, and the average revenue is also equal to the price, as every unit costs the same, so when you divide the total revenue by the number of units sold, you get the price.

 


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