Compute 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 = TR_n − TR_n₋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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Similar questions

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

From the schedule provided below calculate the total revenue, demand curve and the price elasticity of demand:

Quantity	1	2	3	4	5	6	7	8	9
Marginal Revenue	10	6	2	2	2	0	0	0	−5

The market demand curve for a commodity and the total cost for a monopoly firm producing the commodity is given in the schedules below.

Quantity	0	1	2	3	4	5	6	7	8
Total Cost	10	60	90	100	102	105	109	115	125

Use the information given to calculate the following:

(a) The MR and MC schedules

(b) The quantities for which MR and MC are equal

(d) The total revenue, total cost and total profit in the equilibrium

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