Which Statement Explains the Relationship Between Average Revenue,marginal Revenue,and Price

question 245

Multiple Choice

Which statement explains the relationship between average revenue,marginal revenue,and price in a competitive market

• A)Average revenue equals the price of the good, but marginal revenue is different.
• B)Marginal revenue equals the price of the good, but average revenue is different.
• C)Average revenue equals marginal revenue, but the price of the good is different.
• D)Average revenue, marginal revenue, and the price of the good are all equal to one another.

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Definitions:

Prepaids Insurance

Expenses paid in advance for insurance coverage, recognized as assets until the coverage period lapses.

Fixed Manufacturing

Costs that do not vary with the volume of production, including rent, salaries of permanent staff, and equipment depreciation.

Average Costs

Calculated by dividing total costs by the total number of units produced, indicating the cost on a per-unit basis.

Produced Units

The number of units of a product that have been completed by a manufacturing process during a specific period.