Question 15 of 16
Q.Distinguish between (limit your answer to 50 words) : Average revenue and Marginal revenue.
ChseodishaCHSE Odisha Plus Two (Class 12) Commerce Board 2019Subjective· 3mImportance★★★★★est
94% · 15/16 Questions
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Start your 14-day free trial to unlock the full solution →AR is revenue per unit (= price); MR is the addition to total revenue from one more unit sold.
This 3-mark distinguish item is a revenue concept in CHSE Odisha +2 Business Economics.
| Basis | Average Revenue (AR) | Marginal Revenue (MR) |
|---|---|---|
| Meaning | Revenue earned per unit of output sold | Addition to total revenue from selling one extra unit |
| Formula | AR = Total Revenue ÷ Quantity sold | MR = change in Total Revenue ÷ change in Quantity (TRn − TRn−1) |
| Relation to price | AR always equals the price of the product | MR equals price only under perfect competition |
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