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Question
Distinguish between:
Total revenue and marginal revenue
Distinguish Between
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Solution
| Total Revenue | Marginal Revenue |
| 1. Total revenue is the total sales proceeds of a firm by selling a commodity at a given price. | 1. Marginal revenue is the net addition made to total revenue by selling an extra unit of the commodity. |
|
2. Formula: TR = P × Q Total revenue = Price × Quantity |
2. Formula: MRn = TRn - TRn-1 |
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