What is the relation between market price and average revenue of a price taking firm?
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What is the relation between market price and average revenue of a price taking firm?
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Average revenue is described as the sales consistent with unit of the output sold. it is expressed because the ratio among general sales and the output bought.

AR= TR/O

We know that,

 TR= P * Q

AR=P * Q \ Q

 AR = P

For this reason, the marketplace fee and the common sales are the equal for an excellent competitive firm.
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