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JAMB Economics 2007 Question 23

Question 23

Market Structures

The price per unit of a commodity to a buyer is the same as the

  1. A.average revenue of the seller
  2. B.marginal revenue of the seller
  3. C.normal profit of the seller
  4. D.marginal cost of the commodity
Show the answer and explanation

Answer: A (average revenue of the seller)

Explanation

Average revenue = total revenue ÷ quantity sold = price, so what the buyer pays per unit is the seller's average revenue.