Sir/Madam
How to draw average revenue and marginal revenue curve in a single diagram/graph?
Sir/Madam
How to draw average revenue and marginal revenue curve in a single diagram/graph?
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Hello Friend,
Marginal revenue refers to additional revenue generated per unit of additional output. This value can be positive as well as negative. However, average revenue will never be negative.
So, to draw both parameters you have to combine two types of graphs. The procedure is as below:
1- Draw X-axis for positive values only.
2- Draw Y-axis and Y' axis on left and right corners of X-axis respectively for both positive as well as negative values.
3- Use left Y-axis for average revenue values.
4- Use right Y'-axis for marginal revenue values.
5- Use appropriate scales for all axes.
6- Use line graph for average revenue.
7- Use bar graph for marginal revenue.
Thanks,
goyalk
Forgot to mention : If you stil have any doubt, you can refer to how a 'climograph' is constructed. If the doubt still remains, do write. I will try to be more clear.
Thanks,
goyalk