Question

What is the relationship between: :
(a) Marginal revenue and Average revenue
(b) Total revenue and Marginal revenue​

Answer 1

Answer:

(b)

Total revenue is the full amount of total sales of goods and services. It is calculated by multiplying the total amount of goods and services sold by the price of the goods and services. Marginal revenue is directly related to total revenue because it measures the increase in total revenue from selling one additional unit of a good or service.