Quantity Sold TR (f)
5 units 300
6 units 330
The AR and MR for 6 units would be __________.
Quantity Sold TR (f)
5 units 300
6 units 330
The AR and MR for 6 units would be __________.
The correct option is C 30 and 55 respectively
Marginal revenue refers to the change in revenue or additional
revenue which a firm earns on selling a unit more of its output. It is
calculated by dividing the change in total revenue by change in total quantity
of commodity sold.
Marginal revenue = Change in total revenue/ Change in quantity of
commodity sold.
Change in total revenue = ( 330 - 300)
= 30
Change in quantity sold = (6 - 5) units
= 1
unit
Marginal revenue = 30 / 1 unit = 30
Average revenue is the revenue per unit of output sold in the market.
Average Revenue =
total revenue/total quantity
Average revenue of 6 units = 330/6
= 55
Therefore, the MR and AR of 6 units are 30 and 55 respectively.
Marginal revenue refers to the change in revenue or additional revenue which a firm earns on selling a unit more of its output. It is calculated by dividing the change in total revenue by change in total quantity of commodity sold.
Marginal revenue = Change in total revenue/ Change in quantity of commodity sold.
Change in total revenue = ( 330 - 300)
= 30
Change in quantity sold = (6 - 5) units
= 1 unit
Marginal revenue = 30 / 1 unit = 30
Average revenue is the revenue per unit of output sold in the market.
Average Revenue = total revenue/total quantity
Average revenue of 6 units = 330/6
= 55
Therefore, the MR and AR of 6 units are 30 and 55 respectively.
