Average and Marginal relationship

Relationship between AR and MR curves:

Whenever the average revenue (i.e., price) remains constant, the marginal revenue will too stay constant and will concur with the average revenue.

Table: Constant AR and MR

2294_ar and mr table1.jpg

1967_ar and mr.jpg

The firm can sell big quantities only at lower prices. In that situation, the average revenue (i.e., price) of the product falls. Whenever AR falls MR will too fall. However fall in MR will be more than the fall in AR. Therefore the marginal revenue curve will lie beneath the average revenue curve (figure is as shown below)

Table: Downward sloping AR and MR

1173_ar and mr table2.jpg

 

2204_ar and mr2.jpg

 

Latest technology based Economics Online Tutoring Assistance

Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Cost and Revenue help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Cost and Revenue, project ideas and tutorials. We provide email based Cost and Revenue help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Cost and Revenue. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Economics Homework help and assignment help services. They use their experience, as they have solved thousands of Economics assignments, which may help you to solve your complex issues of Cost and Revenue. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.

©TutorsGlobe All rights reserved 2022-2023.