Economics20805 marksAverage revenue and marginal revenue under monopoly
Show the relationship between AR and MR under the monopoly market with the help of a table and figure.
Show the relationship between AR and MR under the monopoly market with the help of a table and figure. [5]
Average Revenue (AR): Revenue per unit of output sold = Total Revenue / Quantity = P (Price) Marginal Revenue (MR): Additional revenue earned from selling one more unit = Change in TR / Change in Q Q P (AR) TR MR --------------------- 1 10 10 - 2 9 18 8 3 8 24 6 4 7 28 4 5 6 30 2 6 5 30 0 7 4 28 ...