Explain relationship between marginal revenue and average revenue

1.	Explain relationship between marginal revenue and average revenue
Answer» Principles of Economics covers scope and sequence requirements for a two-semester introductory economics course. The authors take a balanced approach to micro- and macroeconomics, to both Keynesian and classical views, and to the theory and application of economics concepts. The text also includes many current examples, which are handled in a politically equitable way. Relationship between Marginal Revenue and Average Revenue is stated below: (i) When AR is constant, MR = AR. (ii) When AR is diminishing, AR > MR. (iii) When AR is rising, AR<MR. (iv) MR can be negative, but not AR.

Answer»

Principles of Economics covers scope and sequence requirements for a two-semester introductory economics course. The authors take a balanced approach to micro- and macroeconomics, to both Keynesian and classical views, and to the theory and application of economics concepts. The text also includes many current examples, which are handled in a politically equitable way.

Relationship between Marginal Revenue and Average Revenue is stated below:

(i) When AR is constant, MR = AR.

(ii) When AR is diminishing, AR > MR.

(iii) When AR is rising, AR<MR.

(iv) MR can be negative, but not AR.

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