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Concepts of Revenue|What is Revenue ?|How many types of Revenue ?|What is total Revenue ?|What is marginal revenue ?

 What is Revenue ?

The total amount recieved by a firm from the sale of an item is called revenue.

How many types of Revenue ?

 There are three types of Revenue ?

i) Total Revenue

ii) Marginal Revenue

iii) Average Revenue

               What is total Revenue ?

The revenue that a firm gets by selling a given output is called total revenue.

  TR =P×Q

           What is marginal revenue ?

Marginal revenue is the change in total revenue when one more unit of a commodity is sold.


              What is average yield?

Average receipts refer to revenue per unit of output.


               AR,MR legend TR price stable




                   graphical presentation



• TR is increasing at the same rate. Hence TR is represented by an upward moving straight line.

• Both AR and MR are shown as horizontal straight lines as price is constant. When AR is constant then MR is also constant and AR=PR

      AR,MR legend TR price is not stable



                 graphical presentation



• TR curve is reading decreasing rate till point B. This is because MR is falling.

• TR is maximum at point B. Because MR = 0

• TR starts falling at point B. This is because MR is negative.


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