marginal, average and total rev

Question 1

MR definition

Answer 1

addition to revenue after selling an additional unit of output

Question 2

TR definition

Answer 2

money recieved by the firm from the sale of goods

Question 3

AR definition

Answer 3

TR / output

Question 4

MR calculation

Answer 4

change in TR / change in Q output

Question 5

TR calculation

Answer 5

Q x P

Question 6

Why is AR the demand curve

Answer 6

AR is the price of the good and the demand curve shows the relationship
between P and Q

Question 7

MR and AR relationship

Answer 7

in prfectly competitive market, when the market price is constant, AR and Mr are equal and represent the downward sloping demand curve

in imperfectly/monopolistic- when AR falls s does MR as the firm sells more units

Question 8

MR and TR relationship

Answer 8

When MR is positive, TR increases.
When MR is zero, TR is at its maximum point.
When MR is negative, TR falls.
MR is the addition to TR when one more unit of output is sold.
MR is the slope of TR. When TR rises as output rises, MR declines.