CBSE
Class 10
Class 12
Revenue: Revenue of a firm is its money receipts from the sale of its product. A firms generally conducts its activities with the objective of maximising its profit and thus attain equilibrium.
Average Revenue: It is the revenue per unit of commodity sold.
AR = Total Revenue/No of units sold.
Marginal Revenue: MR is the addition to the total revenue by selling an additional unit of output.
General Relationship between TR and MR:
General Relationship between AR and MR:
Total Revenue: TR may be defined as the total money receipts of the firm from the sale of its total output.
TR = Price Per Unit x Number of units sold.