Questions on revenue
Revenue
Question 1
Consider the example of a firm which produces and sells studio recording equipment.
| PRICE (£) | QUANTITY DEMANDED (000) | TOTAL REVENUE (000) | MARGINAL REVENUE (000) |
| 10 | 3 | ||
| 9 | 4 | ||
| 8 | 5 | ||
| 7 | 6 | ||
| 6 | 7 | ||
| 5 | 8 | ||
| 4 | 9 | ||
| 3 | 10 | ||
| 2 | 11 | ||
| 1 | 12 |
- Using the information contained in the example calculate total and marginal revenue.
- Plot total, average and marginal revenue.
- When TR is at a maximum, what is MR?
