Answer to Question #311998 in Microeconomics for Puchu

Question

Elaborate the term total revenue and marginal revenue also calculate TR & MR in the given table

Price Output Total Revenue Marginal reve

20 1

18 2

16 3

14 4

12 5

Answer 1

Answers

TR: Total revenue is the full amount a seller obtains from the total sale of their product or service.

$TR =Quantity \times Price$

MR: Marginal revenue is the increase in revenue obtained from the sale of one additional unit of product.

$MR=\dfrac{Change in Revenue}{Change in Quantity}$

$\begin {matrix}Price& Output &TR & MR\\20&1&20&20\\18&2&36&16\\16&3&48&12\\14&4&56&8\\12&5&60&4\end{matrix}$