Question

Explain the relationship between TR, AR and MR under perfect competition with the help of a diagram?​

Answer 1

Answer:

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

Relationship between AR and MR:

a) When AR is decreasing, MR should be decreasing faster than AR. Thus, downward sloping MR curve is below the downward sloping AR curve(a situation of monopoly and monopolistic competition)

sorry diagram we can't make no option is there to draw sorry for that