Question

How do you calculate Average Revenue?   Multiple Choice Total Revenue / Quantity or Take TR at...

How do you calculate Average Revenue?  

Multiple Choice

  • Total Revenue / Quantity or Take TR at each level of Q and divide to equal Average Revenue.

  • Change in Total Revenue / Change in Quantity.

  • This term does not exist in the theory of microeconomics.

  • Total Profit / Quantity Sold

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Answer #1

1) total revenue / quantity

Average income is income produced per unit of product sold. It plays a part in deciding the income for a company. The average revenue less the average (total) expense per unit income. A business typically aims to generate the amount of production that maximizes income. Average revenue is merely income received per production unit. This is, in more basic terms, the price of one processing unit. The average revenue is reported as: AR=TR / Q

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