[Solved] Average Revenue means -

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Q.	Average Revenue means -
A.	the revenue per unit of commodity sold
B.	the revenue from all commodities sold
C.	the profit realised from the marginal unit sold
D.	the profit realised by sale of all commodities
Answer» A. the revenue per unit of commodity sold
Explanation: Average revenue is the revenue per unit of the commodity sold. It can be obtained by dividing the TR by the number of units sold. Then, AR = TR/Q AR. In other words, it means price. Since the demand curve shows the relationship between price and the quantity demanded, it also represents the aver- age revenue or price at which the various amounts of a commodity are sold, because the price offered by the buyer is the revenue from seller's point of view. Therefore, averagerevenue curve of the firm is the same as demand curve of the consumer.

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