explain total revenue, average revenue, marginal revenue with the table and diagram
Answers
Answer:
If average revenue and marginal revenue are parallel to horizontal axis then it means both AR and MR are equal to each other i.e. AR = MR. It has been shown with the help of table 2 and diagram 2. From this table, it is clear that when output increases prices or AR remains the same i.e. Rs. 10.
Explanation:
ANSWER
Image result for average revenue and marginal revenue from total revenue with the help of a tableTotal 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)
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