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in Class 12 by kratos

How does changes in marginal revenue affects total revenue?

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by kratos
 
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Marginal revenue measures the change in revenue that results from a change in the amount of goods or services sold. It indicates how much revenue increases for selling an additional unit of a good or service. To calculate marginal revenue, divide the change in total revenue by the change in the quantity sold. Therefore, the marginal revenue is the slope of the total revenue curve.

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