Multiple choice

Which is the other name of the average revenue curve?

  1. Profit curve

  2. Demand curve

  3. Average cost curve

  4. Indifference curve
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The average revenue (AR) curve is identical to the demand curve because AR = Total Revenue/Quantity = Price × Quantity/Quantity = Price. Since price is determined by the demand curve, AR curve and demand curve are the same. Options A, C, and D are incorrect - profit curve, average cost curve, and indifference curve are different concepts.

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