Concept Introduction:
Cartel: In order to eliminate competition; manufacturers or suppliers, or an association creates a formal agreement to earn profits, by manipulating prices.
Marginal Revenue: It refers to an additional revenue gained by producing one additional unit of a product or service. The formula to calculate marginal revenue is:
![EBK ECONOMICS, Chapter 14, Problem 4P , additional homework tip 1](https://content.bartleby.com/tbms-images/9781464143847/Chapter-14/images/html_43847-14-4p_1.png)
Here,
is the change in Total Revenue.
is the change in Quantity of that commodity.
Total Revenue: This refers to the total receipts received by the sale of the given quantity of goods or services. The formula to calculate total revenue is:
![EBK ECONOMICS, Chapter 14, Problem 4P , additional homework tip 4](https://content.bartleby.com/tbms-images/9781464143847/Chapter-14/images/html_43847-14-4p_4.png)
Here,
- P is the price of a commodity
- Q is the quantity of that commodity.
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