Question

what is marginal revenue? How is it related to average revenue?

Answer 1

heya mate here is your answer ☺☺✌


✔✔the revenue gained by producing one additional unit of a product or service.

The average revenue curve is the downward sloping industry demand curveand its correspondingmarginal revenue curve lies below it. The marginal revenue is lower than the average revenue.

The firm's marginal revenue is the extra revenue they earn from selling an additional unit of output. ... Therefore, in perfect competition, average revenue is equalto marginal revenue, as a single price, the ruling market price, is charged for all units sold by firms.

hope this may be helpfull to you ✌✌