Revenue and Producer's Equilibrium

Lesson

Part 1 — total, average and marginal revenue, and the revenue curves of a firm under perfect and imperfect competition.

In this lesson you will

Calculate total, average and marginal revenue from a schedule
Draw and explain the revenue curves under perfect competition
Draw and explain the revenue curves under imperfect competition and relate TR to MR

Part 1 at a glance

Concept

Total, average and marginal revenue

Table of revenue concepts: total revenue is all receipts, found as price times quantity or the sum of marginal revenues; average revenue is revenue per unit, total revenue divided by quantity, which equals price; marginal revenue is the change in total revenue from one more unit
Concept	Meaning	How to find it
Total revenue (TR)	Whole receipts from sales	P × Q, or the sum of all MRs
Average revenue (AR)	Revenue per unit sold	TR ÷ Q (always equals price)
Marginal revenue (MR)	Addition to TR from one more unit	TRn − TRn−1

Check your understanding

For a seller of terracotta lamps at an imagined Bishnupur fair, marginal revenue is the…

Multiple choice1 mark

For a seller of terracotta lamps at an imagined Bishnupur fair, marginal revenue is the