If AR is RS.40 per unit from sale of 3 unit of good and is RS.30per unit from the sale of 4 unit of good. Find the marginal revenue of 4th unit of good
Dear Student
Marginal Revenue = Total revenuen - Total revenuen-1
Marginal Revenue = 120 -120
Marginal Revenue = 0
So MR for 4th unit is 0 as total revenue for 3rd and 4th unit is same
Regards
Unit | Average revenue | Total Revenue (unit * quantity) |
3 | 40 | 120 |
4 | 30 | 120 |
Marginal Revenue = 120 -120
Marginal Revenue = 0
So MR for 4th unit is 0 as total revenue for 3rd and 4th unit is same
Regards