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Marginal revenue:
Marginal revenue is the change in total revenue with respect to a change in quantity sold. That is, it is the change in total revenue that results from the sale of one extra unit of the commodity. It is measured by dividing the change in total revenue ( ΔTR) by the change in quantity sold ( ΔQ). i.e.MR = ΔTR/ΔQ
Where ΔTR = change in TR = New TR – Old TR
ΔQ = change in Q = New Q – Old Q
Mathematical Derivation of ordinary demand function: Here we present the mathematical and more general proof of the above result. Consider, again, the initial price income sit
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