depends on the size of the gap which is created by the AR/D curve and the MR curve.
Explain why the marginal revenue(MR) is always less than the average revenue (AR)?
In a perfect competition, a firm can sell any amount of output at a given market price. It means firm's additional revenue(MR) from the sale of every additional unit of the commodity will be just equal to the market price (i.e. AR). Hence average revenue and marginal revenue become equal (AR=MR) and constant in that situation. Consequently the AR and MR curve will be same and would be horizontal or parallel to the x-axis.
Because of the price taking nature of the firm in the perfectly competitive market. The supply curve would be the portin of the (Marginal Cost Curve) that disects the (P=Ar=Mr curves). Som from that point up would be the supply curve, to produce below that point would not be beneficial to the establishment. Up sloping and equal to the portion of the marginal cost curve that lies above the average variable cost. The demand curve is also perfectly elastic, this too contributes to the fact.
If the Demand Curve is separate from the MR=P curve, the company can not be of Perfect Competition. It can exist in any other market structure: Monopolistic Competition, Monopoly, or Imperfect Competition. In each of these three structures, the Demand Curve will always fall twice as fast as the MP=P=AR Curve. To answer your question in these terms, the company can have a downward sloping Demand Curve separate from the MR=P curve if it is not in the PC Market Structure.
depends on the size of the gap which is created by the AR/D curve and the MR curve.
Explain why the marginal revenue(MR) is always less than the average revenue (AR)?
In a perfect competition, a firm can sell any amount of output at a given market price. It means firm's additional revenue(MR) from the sale of every additional unit of the commodity will be just equal to the market price (i.e. AR). Hence average revenue and marginal revenue become equal (AR=MR) and constant in that situation. Consequently the AR and MR curve will be same and would be horizontal or parallel to the x-axis.
Because of the price taking nature of the firm in the perfectly competitive market. The supply curve would be the portin of the (Marginal Cost Curve) that disects the (P=Ar=Mr curves). Som from that point up would be the supply curve, to produce below that point would not be beneficial to the establishment. Up sloping and equal to the portion of the marginal cost curve that lies above the average variable cost. The demand curve is also perfectly elastic, this too contributes to the fact.
If the Demand Curve is separate from the MR=P curve, the company can not be of Perfect Competition. It can exist in any other market structure: Monopolistic Competition, Monopoly, or Imperfect Competition. In each of these three structures, the Demand Curve will always fall twice as fast as the MP=P=AR Curve. To answer your question in these terms, the company can have a downward sloping Demand Curve separate from the MR=P curve if it is not in the PC Market Structure.
Marginal revenue (MR) is the incremental revenue for the last quantity sold, while average revenue (AR) is the mean revenue for all quantity sold. Mathematically: MR=dTR(Q)/dQ, e.i. MR is the first derivative of the total revenue function TR(Q) with respect to Q; while AR=TR(Q)/Q, e.i. is total revenue divided by Q. An interesting property of MR and AR is that when AR is falling, MR is less than AR; when AR is rising, MR is greater than AR. MR and AR intersect where dAR(Q)/dQ=0.
I doubt it, I don't know what Mr is..
mr bell.end
Average revenue (AR): total revenue per unit of a product sold; Total revenue (TR): total number of dollars received by a firm or firm from the sale of a product; Marginal revenue (MR):additional revenue received result from the sale of an extra unit of product; Under perfect competition P=AR=MR and the firm's demand curve is flat.
look at the instructions
The AR (atomic mass) of CO2 (carbon dioxide) is 44 g/mol. The MR (molar mass) of Na2CO3 (sodium carbonate) is 106 g/mol.
The marginal revenue curve describes the incremental change in revenue (that is, price*units sold). The MR is not always equivalent to its demand curve. The more perfect competition is, the closer demand approaches the MR. This is because, in perfect competition, firms sell at the MC = MR = P criterion. In the opposite case, monopoly, MR always lies under of demand, and firms achieve monopoly profits by choosing a production quantity where MC = MR and charging a price mark-up.