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What's the difference between "AVERAGE REVENUE" to "MARGINAL AVENUE"?.​

User LeoE
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Answer:

see below

Step-by-step explanation:

Average revenue refers to the revenue per output. It is the revenue that a business expects to make from the sale of any item. Average revenue is calculated by dividing the total revenue by the total output.

i.e., Average revenue (AR) = Total revenue (TR) / total output (Q).

Marginal revenue is the revenue generated from the sale of an extra unit. It is the revenue attributed to one more output. It is illustrated by a change in total revenue when one more unit is sold.

User Aaron Okano
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