Average Revenue (AR)for an Individual Firm in a Perfectly Competitive

question 149

Multiple Choice

Average revenue (AR) for an individual firm in a perfectly competitive market equals

• A)p × q.
• B)(p × q)/q.
• C)△p × △q.
• D)△q/△p.
• E)(p × q)/△q.

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Definitions:

Discount Rate

This is the interest rate used in discounted cash flow analysis to determine the present value of future cash flows.

Salvage Value

The expected sale price of an asset at the end of its effective life.

Net Operating Cash Flows

The amount of cash generated by a company's normal business operations after paying operating expenses and taxes.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.