Question

When the first unit of commodity is sold at a price of 20 and marginal revenue from the

second unit is 16 then TR of the firm would be:​

Answer 1

Explanation:

Concepts of Total Revenue Average Revenue and Marginal Revenue

There are four major market types namely, perfect competition, monopoly, monopolistic competition, and oligopoly. Before you understand these market forms, it is important to know the concepts of total revenue, average revenue, and marginal revenue. In this article, we will clarify these concepts with the help of some examples and look at the behavioral principles.

Total Revenue

A firm sells 100 units of a particular commodity for Rs. 10 each. If you were to calculate the amount realized by the firm, the answer is simple – Rs. 1,000 (100 x 10). This is the total revenue for the firm.

Hence, the total revenue refers to the amount of money realized by a firm on the sale of a commodity. Total revenue is expressed as follows:

TR = P x Q … where TR – Total Revenue, P – Price, and Q – Quantity of the commodity sold.

I hope this answer is helpful for you