Table 14-1
-Refer to Table 14-1. Over which range of output is average revenue equal to price?
A)1 to 5 units
B)3 to 7 units
C)5 to 9 units
D)Average revenue is equal to price over the entire range of output.

Question

Table 14-1 
-Refer to Table 14-1. Over which range of output is average revenue equal to price?
A)1 to 5 units 
B)3 to 7 units 
C)5 to 9 units 
D)Average revenue is equal to price over the entire range of output.

Quizplus · Accepted Answer

Average revenue is defined as total revenue divided by the quantity sold. In Table 14-1, price remains constant at $10 over the entire range of output. Therefore, average revenue is equal to price at every quantity sold. Therefore, the correct choice is D.

Table 14-1 -Refer to Table 14-1. Over Which Range of Output Is