What is meant by total revenue, average revenue and marginal
Revenue
arshdeepk2607:
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Total revenue is the total receipts a seller can obtain from selling goods or services to buyers. It can be written as P × Q, which is the price of the goods multiplied by the quantity of the sold goods.
Average revenue is simply the revenue earned per unit of the output. In simpler words, it is the price of one unit of the output.
Marginal revenue is a central concept in microeconomics that describes the additional total revenue generated by increasing product sales by 1 unit.
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Answer:
Average Revenue (AR) = price per unit = total revenue / output. The AR curve is the same as the demand curve. Marginal Revenue (MR) = the change in revenue from selling one extra unit of output. Total Revenue (TR) = Price per unit x quantity.
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