Pls answer for 1 mark
Dear student,
Marginal revenue is the additional revenue generated from the sale of an additional unit of output. It is the change in Total revenue from sale of one unit of a commodity or a good. Under perfect competition, revenue generated from every additional unit of output is always equal to price. In such case, MR(Marginal revenue)and AR(Average Revenue or Price) curves will coincide to each other and will be a straight line parallel to x axis.
Regards,
Marginal revenue is the additional revenue generated from the sale of an additional unit of output. It is the change in Total revenue from sale of one unit of a commodity or a good. Under perfect competition, revenue generated from every additional unit of output is always equal to price. In such case, MR(Marginal revenue)and AR(Average Revenue or Price) curves will coincide to each other and will be a straight line parallel to x axis.
Regards,