Question

Complete the following table: 

Outputs (units)	Price	TR	MR
1	7	–	–
2	6	–	–
3	4	–	–
4	2	–	–

Answer 1

Formulas Used: 

• Total Revenue (TR) = Price × Output
• Marginal Revenue (MR) = Change in TR = TR_n − TR_n−1

Output = 1

• Price = ₹ 7
• TR = 7 × 1 = ₹ 7
• MR = – (first unit has no previous value)

Output = 2

• Price = ₹ 6
• TR = 6 × 2 = ₹ 12
• MR = 12 − 7 = ₹ 5

Output = 3

• Price = ₹ 4
• TR = 4 × 3 = ₹ 12
• MR = 12 − 12 = ₹ 0

Output = 4

• Price = ₹ 2
• TR = 2 × 4 = ₹ 8
• MR = 8 − 12 = ₹ (−4)

Output (units)	Price (₹)	TR (₹)	MR (₹)
1	7	7	–
2	6	12	5
3	4	12	0
4	2	8	−4