Revenue Curves | Business Economics & Finance - B Com PDF Download

 Page 1


Q
TR
TR
Page 2


Q
TR
TR
?General concept of  total revenue, 
average revenue and marginal revenue.
?Derivation of  TR, AR and MR
?Derivation of  TR, AR and MR under 
perfect competitive and monopoly 
market structure.
?Relationship between  TR, AR and MR.
Page 3


Q
TR
TR
?General concept of  total revenue, 
average revenue and marginal revenue.
?Derivation of  TR, AR and MR
?Derivation of  TR, AR and MR under 
perfect competitive and monopoly 
market structure.
?Relationship between  TR, AR and MR.
? Total amount of money value received by a firm or
an industry by selling the goods and services is
known as the revenue.
? For example if a firm produce 100 units of
commodity per day and sells it at Rs.20 per unit
then its total revenue is Rs. 2000 per day.
? The revenue can be classified into three category
such as ;
a. Total Revenue (TR).
b. Average Revenue (AR).
c. Marginal Revenue (MR).
? Each curve have different characteristics for
different market structure.
Page 4


Q
TR
TR
?General concept of  total revenue, 
average revenue and marginal revenue.
?Derivation of  TR, AR and MR
?Derivation of  TR, AR and MR under 
perfect competitive and monopoly 
market structure.
?Relationship between  TR, AR and MR.
? Total amount of money value received by a firm or
an industry by selling the goods and services is
known as the revenue.
? For example if a firm produce 100 units of
commodity per day and sells it at Rs.20 per unit
then its total revenue is Rs. 2000 per day.
? The revenue can be classified into three category
such as ;
a. Total Revenue (TR).
b. Average Revenue (AR).
c. Marginal Revenue (MR).
? Each curve have different characteristics for
different market structure.
? Here we discuss characteristics of TR, AR and MR
under perfect competitive and monopoly market
structure.
GENERAL CONCEPT OF TR, AR AND MR
A. Total Revenue (TR):
? Total sum of money value received from the
sales of various quantities of output of product
produced during a given period of time at certain
price level is known as total revenue of a firm or
an industry for that time period.
? It can be obtained by multiplying total output
sold (Q) by the corresponding price (P).
i.e. TR = P × Q
Page 5


Q
TR
TR
?General concept of  total revenue, 
average revenue and marginal revenue.
?Derivation of  TR, AR and MR
?Derivation of  TR, AR and MR under 
perfect competitive and monopoly 
market structure.
?Relationship between  TR, AR and MR.
? Total amount of money value received by a firm or
an industry by selling the goods and services is
known as the revenue.
? For example if a firm produce 100 units of
commodity per day and sells it at Rs.20 per unit
then its total revenue is Rs. 2000 per day.
? The revenue can be classified into three category
such as ;
a. Total Revenue (TR).
b. Average Revenue (AR).
c. Marginal Revenue (MR).
? Each curve have different characteristics for
different market structure.
? Here we discuss characteristics of TR, AR and MR
under perfect competitive and monopoly market
structure.
GENERAL CONCEPT OF TR, AR AND MR
A. Total Revenue (TR):
? Total sum of money value received from the
sales of various quantities of output of product
produced during a given period of time at certain
price level is known as total revenue of a firm or
an industry for that time period.
? It can be obtained by multiplying total output
sold (Q) by the corresponding price (P).
i.e. TR = P × Q
B. Average Revenue (AR):
? Per unit revenue of a product is known as average
revenue. We obtain AR by dividing (TR) by the
corresponding quantity sold (Q).
i.e.
C. Marginal Revenue (MR):
? An additional amount of money received from the
sells of one additional unit of a product or output.
i.e.