1. #1
    Unregistered

    What is the relationship between Average revenue and Marginal Revenue?

    hii

    what is the relationship between average revenue and marginal revenue?

    thank you in anticipation.

  2. #2
    aashisranjan784 Array
    Join Date
    Aug 2012
    Posts
    1,313

    Re: What is the relationship between Average revenue and Marginal Revenue?

    Dear Friend

    Average Revenue is the revenue per unit of output sold.It can be calculated by dividing total revenue by the no of units sold.

    It is similar to the price at which the units are sold.Average revenue curve of firm is called demand curves of consumers

    Marginal revenue is the net addition to the total revenue by selling one more unit of commodity.It is the revenue of additional unit sold.


    The relation is as below:

    >>If marginal is less than average then average declines

    >>If marginal is greater than average then average rises

    >>If marginal is equal to average then average does not change

    Hope the information helps you.

    all the best


    aashisranjan784

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