Question

AR=10-2Q
MR=-4Q+10
TR=-2Q^2+10Q

the question is draw the graphs of them(AR, MR, TR)

I want detailed explaination??

Answer 1

Average Revenue:

Q	AR
0	10
1	8
2	6
3	4
4	2
5	0
6	-2
7	-4
8	-6
9	-8
10	-10

Marginal Revenue:

Q	MR
0	10
1	6
2	2
3	-2
4	-6
5	-10
6	-14
7	-18
8	-22
9	-26
10	-30

Total Revenue:

Q	TR
0	0
1	8
2	12
3	12
4	8
5	0
6	-12
7	-28
8	-48
9	-72
10	-100

Combined Graph:

Q	TR	MR	AR
0	0	10	10
1	8	6	8
2	12	2	6
3	12	-2	4
4	8	-6	2
5	0	-10	0
6	-12	-14	-2
7	-28	-18	-4
8	-48	-22	-6
9	-72	-26	-8
10	-100	-30	-10

From the above graph, we can deduce that:

• MR is always below AR because producer have to reduce the price to sell additional unit.
• TR first and then starts falling.
• TR turns negative when AR = 0