AR - AR-MR Relationship: The relation between Average and...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: AR-MR Relationship: The relation between Average and Marginal Revenue is similar to that of the behavior of average and marginal quantities in general, such as costs, wages etc. When the marginal quantity is constant, average quantity is also constant and the two values are identical. When the marginal quantity increases, the average quantity likewise increases and is lower than the marginal quantity. On the other hand, when the marginal quantity decreases the average quantity falls but is above or greater than the marginal value. ...
View Full Document

This note was uploaded on 11/26/2011 for the course EC ec 201 taught by Professor - during the Fall '10 term at Montgomery.

Ask a homework question - tutors are online