Answer the following questions based on the given table. Unit of goods sold Price in Rs. TR (Rs.) AR (Rs.) MR (Rs.) : : : : : : : : : : 1 35 2 30 3 25 4 20 a) Complete the given table. [3] b) Draw…

a) Completed Table

We calculate Total Revenue (TR), Average Revenue (AR), and Marginal Revenue (MR) using the formulas:

• TR = Price × Quantity
• AR = TR / Quantity
• MR = Change in TR / Change in Quantity

Step-by-step calculations:

• For 1 unit: TR = 35 × 1 = 35, AR = 35 / 1 = 35, MR = N/A (no previous unit).
• For 2 units: TR = 30 × 2 = 60, AR = 60 / 2 = 30, MR = (60 − 35) / (2 − 1) = 25.
• For 3 units: TR = 25 × 3 = 75, AR = 75 / 3 = 25, MR = (75 − 60) / (3 − 2) = 15.
• For 4 units: TR = 20 × 4 = 80, AR = 80 / 4 = 20, MR = (80 − 75) / (4 − 3) = 5.

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b) MR and AR Curves

Key Observations:

• AR curve is a straight line sloping downward, reflecting the falling price per unit as quantity increases.
• MR curve lies below AR and declines more steeply, reflecting the law of diminishing marginal revenue in a monopolistic or imperfectly competitive market.
• At x = 1, MR is undefined (no previous unit). From x = 2 onward, MR is calculated as the change in TR per additional unit.
• The gap between AR and MR widens as quantity increases, illustrating that each additional unit sold contributes less to total revenue.