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Sir, could you please comment on that with Explaination:
TOTAL SALES REVENUE INCREASES WHEN PRICE IS INCREASED PROVIDED THAT MR IS POSITIVE VALUE.
So we should calculate The quatintity at the level when MR=0, so the cost of making one more is 0 right? If we make one more we incur fixed cost or what?
Seriously I’m a bit confused sir, waiting thorough comment on that, plssss
This is nothing to do with CVP – it is pricing.
The marginal revenue is the extra revenue that arises. When MR = 0 then they have reached maximum revenue.
The fixed cost is not affected.
You really need to look at the pricing lectures where I draw graphs and explain the significance of the marginal revenue.
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