Price equals ?
Correct answer: B. Total revenue / quantity sold
- A. Total revenue - quantity
- B. Total revenue / quantity sold
- C. Total quantity sold quantity sold
- D. Total revenue / total cost
Explanation
Since total revenue equals price multiplied by quantity sold, dividing total revenue by quantity gives the price per unit. This is also called average revenue.
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About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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