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प्रश्न
How are the total revenue of a firm, market price, and the quantity sold by that firm related to each other?
उत्तर
Total revenue is defined as the total sales proceeds of a producer by selling corresponding level of output. In other words, it is defined as price times the quantity of output sold.
Total Revenue = Price × Quantity of output sold
TR = P × Q
TR = PQ
In a perfectly competitive market, the market price is given, i.e., a firm acts as a price taker and cannot influence the price. Hence, a particular firm can influence its TR by altering the quantity of output sold.
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संबंधित प्रश्न
What is the price line?
Why is the total revenue curve of a price-taking firm an upward-sloping straight line? Why does the curve pass through the origin?
What is the relation between market price and average revenue of a price taking firm?
What is the relation between market price and marginal revenue of a price-taking firm?
Calculate the total revenue, marginal revenue and average revenue schedules in the following table. Market price of each unit of the good is Rs 10.
|
Quantity Sold |
TR |
MR |
AR |
|
0 |
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|
1 |
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|
2 |
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|
3 |
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|
4 |
|||
|
5 |
|||
|
6 |
