Q.Distinguish between average revenue and average cost.

Revenue per unit of output sold = Average revenue, so the answer is only c.

Average Revenue (AR) is total revenue divided by the number of units sold, i.e. revenue earned per unit of output. Since total revenue equals price multiplied by quantity, average revenue works out to be equal to the price of the commodity. This is exactly what the statement 'revenue per unit of output sold' describes.

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The odd word is Total Cost — it belongs to the family of cost concepts, while Total Revenue, Average Revenue and Marginal Revenue are all revenue concepts.

Revenue is the money receipt a firm earns by selling its output:

• Total Revenue (TR) = price × quantity sold.
• Average Revenue (AR) = TR ÷ quantity = price per unit.
• Marginal Revenue (MR) = the addition to TR from selling one more unit. …

The economic term is Average Revenue (AR) — revenue per unit of output sold, i.e. AR = Total Revenue / Number of units sold.

A firm's revenue concepts are:

• Total Revenue (TR) — total receipts from selling a given quantity (Price x Quantity).
• Average Revenue (AR) — revenue per unit sold = TR / Quantity. Since TR = Price x Quantity, AR is equal to the price of the commodity, so the AR curve is the firm's demand curve. …