We know that AR can never be negative, can it be zero in any case?

Dear Darshil,

Average revenue refers to the revenue earned by seller on per unit of output. 
Average Revenue = Total revenue / Quantity sold
Total revenue= Price * quantity


Under perfect market condition, AR= Price, as price is always constant.
Under imperfect market condition,  price is never constant. AR rises first, then it reaches to maximum and constant, when AR is maximum then AR=MR. After that AR falls, but it can never be zero or negative because price can never be zero.

Regards
 
 

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