Economics Short Run Vs Long Run Costs Questions
Average revenue in the short run refers to the total revenue earned by a firm per unit of output produced during a specific period of time, typically in the immediate or near future. It is calculated by dividing the total revenue by the quantity of output. In the short run, average revenue is influenced by factors such as market demand, pricing strategies, and the level of competition. It helps firms determine the price at which they should sell their products or services in order to maximize their profits.