Calculate Price (AR)and TR from the follwing data :units of output ; 1 2 3 4 MR ; 20 16 9 3In this what formula should we use, to find out AR

Dear Student, the solution has been provided below. Go through it and do let us know, if you still face any doubt.

 Output (units) Marginal Revenue (MR) (Rs) Total Revenue (MRn = TRn - TR n-1) (Rs) Average Revenue $\left(\mathbit{A}{\mathbit{R}}_{\mathbf{n}}\mathbf{=}\frac{\mathbit{T}{\mathbit{R}}_{\mathbf{n}}}{\mathbit{O}\mathbit{u}\mathbit{t}\mathbit{p}\mathbit{u}\mathbit{t}}\right)$ (Rs) 1 20 MR1 = TR1 - TR1 - 1  20 = TR1 - 0  TR1 = 20 2 16 MR2 = TR2 - TR2 - 1  20 = TR2 - 16 TR2  = 36 3 9 MR3 = TR3 - TR3 - 2  9 = TR3 - 36 TR3  = 45 4 3 MR4 = TR4 - TR4 - 3  3 = TR4 - 45 TR4  = 48
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