1.

Distinguish between the Average revenue and Average cost.

Answer»
S. No.Average RevenueAverage Cost
(i)Average Revenue (AR) refers to total revenue per unit of output sold.Average Cost (AC) refers to total cost of production per unit.
(ii)It is calculated as : Average Revenue =Total Revenue/QuantityIt is calculated as :
Average Cost =
Total Cost/ Total Quantity of Output


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