1
Question
Calculate the total revenue, marginal revenue and average revenue schedules in the following table. Market price of each unit of the good is Rs 10.
Quantity Sold
TR
MR
AR
0
1
2
3
4
5
6
Calculate the total revenue, marginal revenue and average revenue schedules in the following table. Market price of each unit of the good is Rs 10.
|
Quantity Sold |
TR |
MR |
AR |
|
0 |
|||
|
1 |
|||
|
2 |
|||
|
3 |
|||
|
4 |
|||
|
5 |
|||
|
6 |
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Solution
Quantity Sold
Q (units)
TR = P × Q
(Rs )
MR = TRn − TRn − 1
(Rs )
AR = Price = Rs 10
0
0
−
1
10 × 1 = 10
10 − 0 = 10
10
2
10 × 2 = 20
20 − 10 = 10
10
3
10 × 3 = 30
30 − 20 = 10
10
4
10 × 4 = 40
40 − 30 = 10
10
5
10 × 5 = 50
50 − 40 = 10
10
6
10 × 6 = 60
60 − 50 = 10
10
|
Quantity Sold Q (units) |
TR = P × Q (Rs ) |
MR = TRn − TRn − 1 (Rs ) |
AR = Price = Rs 10 |
|
0 |
0 |
− |
|
|
1 |
10 × 1 = 10 |
10 − 0 = 10 |
10 |
|
2 |
10 × 2 = 20 |
20 − 10 = 10 |
10 |
|
3 |
10 × 3 = 30 |
30 − 20 = 10 |
10 |
|
4 |
10 × 4 = 40 |
40 − 30 = 10 |
10 |
|
5 |
10 × 5 = 50 |
50 − 40 = 10 |
10 |
|
6 |
10 × 6 = 60 |
60 − 50 = 10 |
10 |
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