ECONOMICS
PROFIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Marginal cost
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Marginal Revenue
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Profit
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Marginal Profit
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Detailed explanation-1: -Marginal revenue is the rate of total revenue. The slope of total revenue is determined by the marginal revenue. That is why when MR is constant, Tr increases at a constant rate and when MR starts decreasing then the total revenue increases at a decreasing rate and when MR becomes negative then the TR starts falling.
Detailed explanation-2: -Answers. (i) An increase in Total Revenue at a diminishing rate or a decrease in Total Revenue will result from decrease in Marginal Revenue.
Detailed explanation-3: -To calculate marginal revenue, you take the total change in revenue and then divide that by the change in the number of units sold. The marginal revenue formula is: marginal revenue = change in total revenue/change in output.
Detailed explanation-4: -How do you calculate MR and TR? The total revenue formula equals the amount of output sold multiplied by the price. Marginal revenue is equal to the difference of total revenues divided by the difference in total quantity.