Revenue in different types of market

Revenue in different types of market        

Pure competition – in this market every manufacturing produce same types of goods & services. There are lots of manufacturing units available in the market. Demand & supply balance the market and fix the price in the market. The price is also same in the whole market.

Revenue in Pure Competition

Monopoly or imperfect competition – in this market, only one manufacturing units available in the market and market demand is already given. Manufacture adjust its price its own. Average revenue is down in the slope and marginal revenue stand below its AR. Company know the demand and they sell the more quantity on a lower price that way MR below the AR.

Revenue in monopoly

Oligopoly – in this market, there are few manufacturing units and also their behaviour influences the other unit’s policy. If a company increases their price then other company not follows the same because consumer always prefer to buy a cheaper/low price things. In this market AR & MR are down in slope. MR put down or below the AR line but they are not in direct down but there are lot of kinks in the line.

Revenue in Oligopoly