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PASHUPATI PROPERTIES - A REAL ESTATE COMPANY

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Graphical Representation of TR, AR, and MR with Detailed Explanation For NEB Grade 12 Economics, Management

Graphical Representation of TR, AR, and MR with Detailed Explanation To understand Total Revenue (TR), Average Revenue (AR), and Marginal Revenue (MR) more effectively, we will make a schedule (table) and then plot a graph (curve) to visualize their relationship. Step 1: TR, AR, and MR Schedule (Table Format) Quantity Sold (Q) Price per Unit (P) Total Revenue (TR = P × Q) Average Revenue (AR = TR ÷ Q) Marginal Revenue (MR = ΔTR ÷ ΔQ) 0 10 0 - - 1 10 10 10 10 2 10 20 10 10 3 10 30 10 10 4 10 40 10 10 5 10 50 10 10 6 10 60 10 10 Key Observations from the Table : TR (Total Revenue) is increasing as more units are sold. AR (Average Revenue) remains constant at Rs. 10, which is equal to the price of the product. MR (Marginal Revenue) is also constant at Rs. 10, meaning each additional unit sold adds Rs. 10 to the total revenue. This is a perfectly competitive market , where AR = MR = Price . Step 2: Graph ...

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