Derivation AR And MR Curve From TR Curve Under Monopoly Or Imperfect Competition

Monopoly is a market structure in which there is single seller of a product having no close substitutes. In Monopoly, firm is only one which is price maker and  this monopoly price is always different unlike perfect competition.

The relationship among TR, AR and MR under monopoly is explained in table below:

where,

Q=Unit of quantity sold

P=price

TR=price*quantity

AR=TR/Q

MR=change in TR/ change in quantity sold

In this table we can see that TR is increasing upto 4 unit and constant upto 6 and derceasing at 7. We can see price is different unlike price in perfect competition. TR increases at decreasing rate when MR declines.