Handout 4
Graph 1. Price Determination for Purely Competitive Firm. INDUSTRY FIRM. Some Terms: TR = Total Revenue = Price X Quantity. AR = Average Revenue = Per Unit Revenue = TR. Q. MR = Marginal Revenue = Additional Revenue per an Additional Unit of Output = (TR = TR2 – TR1 ( Q Q2 – Q1 Example: Assume . P = $12 . per unit. ................
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