Question

9. From the following schedule calculate TR AR and MR.
4 Marks
Price
6
7
8
Units Sold
5​

Answer 1

Answer:

QUANTITY SOLD

TR

MR  AR

0  0  0  -

1  10  10  10

2  20  10  10

3  30  10  10

4  40  10  10

5  50  10  10

6  60  1O  10

Total money receipts of a firm from the sale of a given output is called total revenue.

TR = OUTPUT*PRICE

Marginal revenue is the change in total revenue when one more unit of a commodity is sold.

MR= change in TR/change in quantity sold

Average revenue refers to revenue per unit of output.

AR=TR/Q

If AR is constant, MR is equal to AR. Both are indicated by the same horizontal straight line(a situation of perfect competition)

Explanation: