Economics 0455 · IGCSE · Firms’ costs, revenue and objectives

Firms’ costs, revenue and objectives — practice question

When the product is sold at $5, weekly demand for a firm’s product is 1000 units. If the price increases to $10, weekly demand for its product drops to 600 units. How do the firm’s average revenue (AR) and total revenue (TR) per week change when the product price increases?

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