class 12 economics Concept of revenue Notes
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