Write a short note on Marginal Revenue.

1.	Write a short note on Marginal Revenue.
Answer» Marginal revenue (MR) is the addition to the total revenue by the sale of an additional unit of a commodity MR = ΔTR/ΔQ MR-Marginal Revenue; ∆TR – Change in total revenue, ∆Q – Change is the total quantity (OR) MR = TR_n – TR_n-1 TR_n – Total Revenue of n^th item. TR_n – Total Revenue of n-1 item. If TR_n-1 = PQ, MR = dTR / dQ = P Which is equal to AR.

Answer»

Marginal revenue (MR) is the addition to the total revenue by the sale of an additional unit of a commodity

MR = ΔTR/ΔQ

MR-Marginal Revenue; ∆TR – Change in total revenue, ∆Q – Change is the total quantity (OR)

MR = TR_n – TR_n-1

TR_n – Total Revenue of n^th item.

TR_n – Total Revenue of n-1 item.

If TR_n-1 = PQ, MR = dTR / dQ = P

Which is equal to AR.

Discussion