Question

Explain the following:

Revenue curves under perfect competition.

Answer 1

Revenue is the income a producer earns from selling goods or services. It includes:

1. Total Revenue (TR): Total income from sales
   TR = Price × Quantity
2. Average Revenue (AR): Revenue per unit sold.
   `AR = (TR)/"Quantity"`
3. Marginal Revenue (MR): Additional revenue from selling one more unit.
   `MR = (DeltaTR)/(Delta "Quantity")`