REVENUE FUNCTION

Revenue

Amount Relieved from sale of Goods

Marginal Revenue Total Revenue Average Revenue

I t

f t t t
Additional SalesReceipt

Sum Sales Receipt per unit SR

x
sale One More Unit

of from all units

PERFECT COMPETITION

MONOPOLY / MONOPOLISTIC

Any Omt can be sold at To sell more Qut Price

same price has to be reduced

Q P TR MR AR Q P TR MR AR
O lo O O
I 10 10 10 10 1 10 10 110 10
2 10 20 10 10 2 9 18 8 9
3 10 30 10 10 3 8 24 16 8
4 10 40 10 10 4 7 28 4 7
 4 7 1
5 30 50 10 10 5 6 30 2 6
6 10 60 10 10 6 5 30 O 5
7 to 70 10 10 7 4 28 2 y

y
a
TR y
n
Ratt
ConstantConstant t

at is
R MR TR
gncreases
ecoz
17 17
x x

MR MR
p AR MR
R AR
Tve AR
I 7 I I 7
O X O z ve

MR

D P AR MR Constant D MR toe TRT

2 MR _O TR Max
2 TR A 3 MR ve TR t
a AR MR

DEMAND CURVE = PRICE LINE = AR