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
  1. Using the information contained in the example calculate total and marginal revenue.
  2. Plot total, average and marginal revenue.
  3. When TR is at a maximum, what is MR?

Answer