Answer to Question #230015 in Economics for Tej

Question

From the given table calculate TR, MR and AR. Highlight the relationship between Total revenue and Marginal Revenue

Quantity. Price
50. 200
60. 150
70. 100
80. 50
90. 10

Answer 1

TR = P×Q,

MR = (TR2 - TR1)/(Q2 - Q1),

AR = TR/Q = P.

Q P TR MR AR

50 200 10,000 -- 200

60 150 9,000 -100 150

70 100 7,000 -200 100

80 50 4,000 -300 50

90 10 900 -310 10