Positive
Zero
Negative
None of these
Answer is Right!
Answer is Wrong!
The correct answer is: C. Negative
Average revenue is the total revenue divided by the number of units sold. It is a measure of the average amount of money that a company makes per unit sold.
The average revenue curve will not touch the x-axis because it cannot be negative. This is because the average revenue is always positive or zero. If the average revenue were negative, it would mean that the company is losing money on each unit sold. This is not possible in the long run, as the company would eventually go out of business.
Here is a brief explanation of each option:
- A. Positive. The average revenue can be positive. This is the case when the company is making a profit on each unit sold.
- B. Zero. The average revenue can be zero. This is the case when the company is breaking even, meaning that it is not making a profit or a loss on each unit sold.
- D. None of these. This is not the correct answer, as the average revenue can be positive or zero.