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Question
Complete the following table:
| Outputs (units) | Price | TR | MR |
| 1 | 7 | – | – |
| 2 | 6 | – | – |
| 3 | 4 | – | – |
| 4 | 2 | – | – |
Complete the Table
Numerical
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Solution
Formulas Used:
- Total Revenue (TR) = Price × Output
- Marginal Revenue (MR) = Change in TR = TRn − TRn−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 |
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