What is the relation between market price and average revenue of a price taking firm?

Average revenue represents the revenue generated per unit of the product or output sold. It is expressed as the proportion between total revenue as well the amount (q) sold.

For price taking firms, market price is equivalent to average revenue.

It is known that:

Total Revenue = Market Price*Quantity, and

Average Revenue = Total Revenue / Quantity Sold

Thus, Average Revenue = Market Price*Quantity / Quantity, which gives

Average Revenue = Market Price

Hence, in a price taking firm, the average revenue tends to be equivalent to the market price.