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)
103
94
85
76
67
58
49
310
211
112
  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