a) Revenue

a) Formulae to calculate and understand the relationship between: total revenue, average revenue, marginal revenue


total revenue = revenue from producing all output

  • TR = P × Q


average revenue (price) = revenue from producing one unit of output

  • ATR = TR/Q


marginal revenue = revenue from producing one additional unit of output

  • MR = ΔTR / ΔQ


for a firm in imperfect competition

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