Question

With a​ downward-sloping demand​ curve, average revenue is equal to price A. because the firm must lower its price to sell additional units. B. because the downward slope is constant. C. since average revenue is the slope of the demand curve. D. ​actually, average revenue is always equal to​ price, whether demand is downward sloping or no

Answer 1

D. ​Actually, average revenue is always equal to​ price, whether demand is downward sloping or no

Step-by-step explanation:

This is because Average revenue is the amount of revenue that is obtained by selling an addition unit of output. This additional revenue is always = Price as proven by the equation below,

Total Revenue = Price * Quantity

Thus, AR = Total Revenue / Quantity

Input elements of the Total revenue we get,

AR = Price * Quantity / Quantity

AR = Price

Hope that helps.