Please answer question number 8
The marginal revenue of a unit is the difference between the total revenue achieved at the current unit and the total revenue achieved at the preceding unit. In simple words, it is the difference between two consecutive total revenue figures. Differentiating total revenue function with respect to the quantity renders marginal revenue function.
Average revenue is the simple ratio of total revenue with respect to the quantity.
No, the demand schedule does not belong to a perfectly competitive market. In a perfectly competitive market, the price is equal to the marginal revenue earned by the firm. This component is constant as well as equal to the average revenue curve. In other words, a firm in a perfectly competitive market faces a horizontal demand curve which is also its marginal revenue and average revenue curve. Therefore, the price, average revenue, and marginal revenue are equal.
In this case, however, the quantity demanded is increasing with a decrease in the price. This renders the firm with a downward sloping demand curve, which is an indicator of imperfect competition.
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