What is the relation between the marginal revenue amd the average revenue? a. the marginal revenue is higher than the average revenue. b.the two are unrelated. c.the marginal revenue is lower than the average revenue. d.the marginal revenue curve is below the average revenue curve until the point where revenue are maximised and then it is above it
What is the relation between the marginal revenue amd the average revenue?
a. the marginal revenue is higher than the average revenue.
b.the two are unrelated.
c.the marginal revenue is lower than the average revenue.
d.the marginal revenue curve is below the average revenue curve until the point where revenue are maximised and then it is above it
Revenue is the total income generated by the sales of goods and services produced in the economy. Average revenue is the revenue divided by the total number of output produced. Marginal revenue is the additional revenue earned from one additional unit of output produced. Both the marginal and average revenue curves are downward sloping. Average revenue is maximised when marginal revenue equals average revenue.
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