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  Revenue Concept Homework Help

Revenue Concept of Perfect Competitive Firms is given below

Total Revenue (TR) = P * Q or total income earned from sale.

Average Revenue (AR) =  754_revenue concept.png or income earned per unit of sale.

Marginal Revenue (MR) =  485_revenue concept1.png or additional income earned from selling an additional unit

Illustration

 

Price (P)

($)

Quantity (Q)

(units)

TR = P x Q

($)

AR = 754_revenue concept.png

($)

MR = 485_revenue concept1.png

($)

      $5

        5

        5

        5

        5

        5

        5

        5

        5

        5

           1

           2

           3

           4

           5

           6

           7

           8

           9

         10

      $ 5

        10

        15

        20

        25

        30

        35

        40

        45

        50

       $5

         5

         5

         5

         5

         5

         5

         5

         5

         5

       $5

         5

         5

         5

         5

         5

         5

         5

         5

         5

1997_revenue concept2.png

2390_revenue concept3.png

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