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