Q.A firm under imperfect competition faces the following demand schedule. Fill in Total Revenue (TR), Average Revenue (AR) and Marginal Revenue (MR): Quantity (units) = 1, 2, 3, 4, 5 and Price per unit (₹) = 10, 9, 8, 7, 6.

Total revenue is price times quantity, average revenue equals the price, and marginal revenue is the addition to total revenue from each extra unit.

Step 1 — Total Revenue, $TR = P \times Q$.

Step 2 — Average Revenue, $AR = TR/Q$. Since $AR = (P\times Q)/Q = P$, average revenue simply equals the price column: 10, 9, 8, 7, 6.

Step 3 — Marginal Revenue, $MR = TR_n - TR_{n-1}$.

Step 4 — Read the pattern. AR falls by ₹1 at each step; MR falls by ₹2 at each step, so MR lies below AR at every output beyond the first — exactly the relationship expected when a price-maker must cut price on all units to sell more.

Cross-check via the sum of MR. The marginal revenues should add up to total revenue at that output. Summing MR up to Q = 5: $10+8+6+4+2 = 30$, which equals $TR_5 = ₹30$. Likewise up to Q = 3: $10+8+6 = 24 = TR_3$. The independent addition confirms the MR figures.

Writing AR as $TR \times Q$ instead of $TR / Q$; forgetting that AR equals price; and computing MR as $TR/Q$ (that is AR) rather than the difference between successive TR values. Also, taking $MR_1$ against a non-zero base — the first unit's MR is measured from TR = 0.