--%>
Assignment Help - homework help

Relation between Average Revenue, Total and Marginal Revenue

Illustrates the relation between Average Revenue, Total Revenue and Marginal Revenue?

E

Expert

Verified

The relationship between Average Revenue, Total Revenue and Marginal Revenue can be understood with the assist of the illustrated table:

904_Average Revenue, Total Revenue and Incremental Revenue.png

The study of the given table reveals as follows:

1. As long as Average Revenue is falling, Marginal Revenue will be less than Average Revenue

2. Marginal Revenue falls more steeply than Average Revenue

3. Total Revenue will be rising as long as Marginal Revenue is positive

4. Where Marginal Revenue is negative, Total Revenue will be falling

5. Total Revenue will be maximization at the point where Marginal Revenue is Zero.

The relation in between elasticity of demand and Total Revenue can be summarized as given below:

704_Total Revenue.png

   Related Questions in Managerial Economics

  • Q : Process of Signaling Job applicants

    Job applicants make use of polished resumes explaining education, work experience and skills, accompanied from supportive letters of recommendation letters like tools in a process economist’s call: (1) adverse selection. (2) signaling. (3) human

    		•
  • Q : Explain the way of Price Elasticity of

    Explain the way of Price Elasticity of Demand.

    		•
  • Q : Which progress illustration was Pilgrims

    Agricultural productivity within Massachusetts Bay Colony increased while Native Americans showed Pilgrims how crops grow faster and better when rotten fish are dropped in along with newly-planted seeds. This new knowledge for the Pilgrims was an illustration of: (1)

    		•
  • Q : Charging similar price by pure

    When all firms in an industry charge similar price for their product, it: (w) proves the existence of a cartel. (x) proves the existence of price leadership. (y) indicates an oligopoly. (z) may be consistent along with either pure competition or oligo

    		•
  • Q : Illustrates the types of Demand

    Illustrates the types of Demand Forecasting?

    		•
  • Q : Decrement of supply and demand for a

    When both supply and demand for a good reduce, this is certain that: (w) market price will rise. (x) equilibrium quantity will reduce. (y) quality of the good will decline. (z) level of consumer satisfaction will increase. I need a

    		•
  • Q : General Training in Human Capital The

    The knowledge regarding local shrubs and trees which Morgan learns whereas working as an apprentice landscaper into the suburbs of a huge city is an illustration of the benefits from: (1) dirty work. (2) general training. (3) dues-paying. (4) high-skilled employment.

    		•
  • Q : What are the types of elasticity of

    What are the types of elasticity of demand?

    		•
  • Q : Purely competitive equilibrium labor

    When this purely competitive labor market is firstly in equilibrium at D0L, S0L, an increase within the price of output will result into equilibrium being attained at: (w) D0L, S0L. (x) D1L, S1L. (y) D2L, S1L. (z) D1L, S0L.

    Q : Illustrates the significance of

    Illustrates the significance of elasticity?

    		•