Revenue Concept of Perfect Competitive Firms is given below
Total Revenue (TR) = P * Q or total income earned from sale.
Average Revenue (AR) = or income earned per unit of sale.
Marginal Revenue (MR) = or additional income earned from selling an additional unit
Illustration
Price (P)
($)
Quantity (Q)
(units)
TR = P x Q
AR =
MR =
$5
5
1
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10
$ 5
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