Answer to Question #218870 in Economics for prakash reddy

Question

Relationship between total revenue (TR) and marginal revenue (MR).

Quantity Price Total revenue Average revenue Marginal revenue

50 200 10000 50 10000

60 150 9000 60 1000

70 100 7000 70 2000

80 50 4000 80 3000

90 10 900 90 3100

Answer 1

In this case as total revenue (TR) decreases while quantity produced increases from 50 to 90 units, the marginal revenue (MR) is increasing. So, TR and MR have inverse relationship. But the same time MR = TR'(Q).