What does average revenue and marginal revenue mean? The relationship between AR and MR curve explained.
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The total revenue of a firm is equal to the total output multiplied by price. It is the total receipt of a firm from its sale. From the total receipts or revenues we derive Average and Marginal revenue.
The between Average Revenue and Marginal Revenue of a firm explained along with the relationship between AR and MR under perfect competition.
Revenue budget consists of the revenue receipts of the government and the expenditure met from such revenues whereas the capital budget consists of capital receipt and payments.
Production means creation of utility having exchange value. Production function implies technical relationship between inputs and output. In the case of short run production function some inputs are kept constant and one input varies. This forms the subject matter of the law of variable proportions.