Multiple choice

The other name by which the Average Revenue Curve is known is

  1. Indifference Curve

  2. Income Consumption Curve

  3. Demand Curve

  4. Envelope Curve
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Average Revenue (AR) curve represents revenue per unit sold, which equals price under standard market conditions. Since price and quantity demanded have an inverse relationship per the Law of Demand, the AR curve maps the same relationship as the Demand Curve. For a perfectly competitive firm, AR equals marginal revenue and market price, making it coincident with the horizontal demand curve.

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