<
Economics FROM 4 ART
CHAPTER 2 : REVENUE CONCEPT
2) Average RevenueAR is the revenue obtained from the sale of a unit of the output. It is calculated by dividing the total revenue by the quantity sold.
AR=Total R/Q’ties Sold
AR curves has difference shapes in different markets for example in a perfect market Average Revenue.
- MARGINAL Revenue
MR=TR/Q
MR is an additional obtained from the sale of an additional unit of out. In other words it is the total Revenue insert from the sale of one more unit of another input. The graphs of MR are similar to those of AR. The shape depends on the different forms of the market(see diagram under AR)
par Claude Foumtum