AR is also known as:a)priceb)incomec)revenued)none of the aboveCorrect...
AR or Average Revenue is a term used in economics and business to refer to the amount of revenue generated per unit of output sold. It is calculated by dividing total revenue by the quantity of goods or services sold. AR is also known as price, as it represents the price at which each unit of output is sold.
Explanation:
AR is a crucial metric for businesses as it helps them to determine the price at which they should sell their products or services. It is important for businesses to set their prices at a level that maximizes their revenue and profits. By calculating AR, businesses can determine the optimal price point that will help them achieve this goal.
AR is calculated by dividing total revenue by the quantity of goods or services sold. For example, if a company sells 100 units of a product at a price of $10 per unit, its total revenue would be $1000. Dividing this by the quantity sold (100), we get an AR of $10 per unit.
AR is also important for businesses to monitor over time. If a company notices a decline in its AR, it may indicate that its prices are too high and it needs to lower them to remain competitive. On the other hand, if AR is increasing, it may indicate that the company is successfully increasing its prices or selling higher-priced products, which can lead to higher profits.
In conclusion, AR is a key metric for businesses to monitor and use in their pricing strategy. It is also a useful tool for investors and analysts to evaluate a company's financial performance.
AR is also known as:a)priceb)incomec)revenued)none of the aboveCorrect...
AR (Average Revenue) = total revenue ÷qty of a commodity. total revenue is price * qty. substitute price*qty in place of Total Revenue. Therefore AR = P* Q÷Q . Q and Q gets cancelled. Hence AR = PRICE