Figure 9-2 Revenues for a Price-Taking Firm
Total revenue rises by $3 for every bushel sold. Because every bushel
brings in $3, the average revenue per bushel sold is clearly $3.
Furthermore, because each additional bushel sold brings in $3, the
marginal revenue of an extra bushel sold is also $3. The table in Figure
2 shows calculations of these revenue concepts for a range of outputs
between 10 and 13 bushels. The figure plots the various revenue curves.
When the firm is a price taker, Because price does not
change as a result of the firm changing its output, neither marginal
AR=MR=p.