Question

conclusion of relationship between average revenue and marginal revenue​

Answer 1

Answer:

The relationship between average revenue and marginal revenue is the same as between any other average and marginal values. When average revenue falls marginal revenue is less than the average revenue. When average revenue remains the same, marginal revenue is equal to average revenue.

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Answer 2

Answer:

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• Marginal revenue is the change in total revenue due to selling one more unit of the good. Average revenue is the price per unit sold. Allocative inefficiency arises when resources are not appropriately allocated and result in deadweight losses.