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Average revenue is conceptually equivalent to the:
Average revenue is conceptually equivalent to the: A) Unit price of the product.
B) Average cost of the product.
C) Marginal cost of the product.
D) Total revenue of the product.
Final answer:Average revenue is conceptually equivalent to the unit price of the product, which reflects the amount a firm receives for each unit sold. The answer is option B) Average cost of the product..Explanation:The question asks which concept is equivalent to average revenue. Average revenue (AR) is conceptually equivalent to the unit price of the product, making option A) Unit price of the product the correct answer. Average revenue is calculated by dividing the total revenue by the quantity sold, thereby representing the revenue earned per unit of output sold. This is conceptually the same as the unit price of the product, as it reflects the amount of money a firm receives for each unit of product sold. In perfectly competitive markets, average revenue and marginal revenue are equal to the price of the product, since the price remains constant regardless of the number of units sold....