Question

what is Average Revenue & Marginal Revenue ?​

Answer 1

Answer:

According to the selling of a firm, total revenue is the whole product price; average revenue means the selling price per unit quantity and marginal revenue is the change of total revenue per unit quantity change. These are the concept of total, average and marginal revenue.

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Explanation:

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Answer 2

Both average revenue and marginal revenue are used to predict the future expected revenue.

Explanation:

There is a direct relationship between average revenue and marginal revenue.

Average Revenue:

Average revenue termed as revenue earned per unit of output.

• Estimated profit may be found out from average revenue.
• The structure of the market resembles the relationship between average revenue and output.
• $Average revenue = \frac{total revenue}{cost}$

Marginal revenue:

Marginal revenue is termed as additional revenue occurs from one extra unit sold and it also has marginal costs.

• Marginal revenue remains constant till the certain level of output.
• It is based on the law of diminishing returns.$Marginal revenue = \frac{change in revenue}{change in quantity}$  

In the perfectly competitive market, average revenue is equal to marginal revenue.