Revenue of a competitive Firm Total revenue is proportional to the amount of output. H arc Inc. items and derived items c ht o 2001 by Harcourt, Inc
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Revenue of a Competitive Firm Total revenue is proportional to the amount of output
Revenue of a Competitive Firm Average revenue tells us how much revenue a firm receives for the typical unit sold H arc Inc items and derived items copyright o 2001 by Harcourt, Inc
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Revenue of a Competitive Firm Average revenue tells us how much revenue a firm receives for the typical unit sold
Revenue of a Competitive Firm n perfect competition, average revenue equals the price of the good. Total revenue Average revenue Quantity (Price x Quantity) Quantity Price H arc Inc items and derived items copyright o 2001 by Harcourt, Inc
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Revenue of a Competitive Firm In perfect competition, average revenue equals the price of the good. Average revenue = Total revenue Quantity = (Price Quantity) Quantity = Price
Revenue of a competitive Firm Marginal revenue is the change in total revenue from an additional unit sold MR=△TR△Q H arc Inc items and derived items copyright C 2001 by Harcourt, Inc
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Revenue of a Competitive Firm Marginal revenue is the change in total revenue from an additional unit sold. MR =TR/ Q
Revenue of a competitive Firm For competitive firms, marginal revenue equals the price of the good. H arc Inc. items and derived items c ht o 2001 by Harcourt, Inc
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Revenue of a Competitive Firm For competitive firms, marginal revenue equals the price of the good