WAEC Economics 2021 Theory — Question 6

Model answer

Using Total Revenue (TR) = Price (P) × Quantity (Q): for example, if TR=3,600 at a price of 30, then quantity U = 3,600÷30 = 120. Similarly, V = 100×40 = 4,000. Marginal Revenue (MR) = TRₙ − TRₙ₋₁, e.g. W = 4,600−3,600 = 400. Average Revenue (AR) = TR÷Q, e.g. X = 3,600÷120 = 30. Each unknown (U, V, W, X, Y) is found by applying the appropriate revenue formula to the adjacent known values in the table.