Question

Define Marginal Revenue. How can we get marginal revenue
from Total Revenue?

Answer 1

Answer:

To calculate marginal revenue, divide the change in total revenue by the change in the quantity sold. Therefore, the marginal revenue is the slope of the total revenue curve. Use the total revenue to calculate marginal revenue.

Answer 2

Marginal Revenue -  Marginal means additional. Therefore, marginal revenue means additional revenue that is generated from the production of one more unit of a good.

Total revenue - It means the all the amout that is earned by selling all the units of  a produced good.

We can get marginal revenue from total revenue by applying the following formula:

Mariginal revenue =  $TR_{n} -TR_{n-1}$

i.e. Total Revenue of n units - Total Revenue of n-1 units.