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Describe the Difference Between Average Revenue and Marginal Revenue

question 2

Essay

Describe the difference between average revenue and marginal revenue. Why are both of these revenue measures important to a profit-maximising firm?


Definitions:

Psychographics

The study of consumers' lifestyles, interests, attitudes, and values to understand their behavior and preferences.

Demographics

Statistical characteristics of the segment of the market that might purchase a product.

Geographic

Pertaining to the physical features, location, or characteristics of the earth or its environments.

End-use

The final application or consumption for which a product, material, or service is intended after its manufacture or production.

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