Answer :

Marginal revenue is the change in revenue with every additional quantity of output sold. It can be calculated with help of following formula

MR = TRn+1 - TRn


Where,


MR - Marginal Revenue


TRn+1 - Total revenue on sale of (n+1) quantity of output


TRn - Total revenue on sale of (n) quantity of output


In case of a price taking firm the market price is equal to marginal revenue. Therefore, in perfectly competitive market -


P = AR= MR


With help of following table we can understand this



Rate this question :

How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Try our Mini CourseMaster Important Topics in 7 DaysLearn from IITians, NITians, Doctors & Academic Experts
Dedicated counsellor for each student
24X7 Doubt Resolution
Daily Report Card
Detailed Performance Evaluation
caricature
view all courses
RELATED QUESTIONS :

(a) Define price Economics - Board Papers

If the market supEconomics - Board Papers

Will a profit-maxNCERT - Introductory Microeconomics

How does an increNCERT - Introductory Microeconomics