Why the average revenue curve is the firm's demand curve
Average revenue (AR) is the price a firm receives per unit sold. Because price and quantity demanded are the same relationship shown on a demand curve, the AR curve and the demand curve are identical.
Formula
AR = TR ÷ Q = Price
Real World
Netflix charges every subscriber the same monthly price regardless of how much they watch — the revenue per customer (AR) equals that price, tracing the same downward-sloping relationship as its demand curve as it adjusts subscription fees.
Exam Focus
State explicitly that AR = Price, then explain why this makes the AR curve identical to the demand curve — don't just assert it.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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