class 12 economics Concept of revenue Notes

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 Concept of Revenue........short and easy notes for board exam


1. What do you mean by total revenue?
> Total revenue is amount obtained by multiplying the quantity sold by its price per unit.
Total revenue = quantity sold * price per unit
i.e., a seller sells 500 unit @10 rupees per unit, Total revenue = 500 * 10 means 5000 rupees.

2. What do you mean by marginal revenue?
> Marginal revenue is the addition made to the total by selling one more unit.
e.g., MRn = TRn - (TRn-1)

3. What do you mean by average revenue?
> Total revenue divided by unit of output sold, is called average revenue.
e.g., AR = TR / Q


POINTS;
  • In Monopoly and monopolistic competition, MR become zero or negative.
  • In perfect competition market, AR = MR
  • When MR become zero, TR become maximum



THE END

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