calculate the MR nd explain relation between them
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firstly we find out TR ( AR*Q)
then. we find out MR (TRn-TRn-1)
Relation b/w them is:
TR & MR is
1. when MR is decreasing TR increases but at diminishing rate.
2.when MR is zero TR is maximum
3. when MR is negative then TR starts decline.
AR & MR
1.when AR is decreasing MR also decrease but at faster rate.
2.MR can be zero & negative but AR can never be zero and negative.
then. we find out MR (TRn-TRn-1)
Relation b/w them is:
TR & MR is
1. when MR is decreasing TR increases but at diminishing rate.
2.when MR is zero TR is maximum
3. when MR is negative then TR starts decline.
AR & MR
1.when AR is decreasing MR also decrease but at faster rate.
2.MR can be zero & negative but AR can never be zero and negative.
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