Convex function: Graph below all chords and above all tangents

1
Convex function Graph below all chords and above
all tangents
2
Concave function above chords, below tangents
3
Revenue function R(x)
max
inflection
a
b
Quantity x
4
Slope of green line R(x)/xaverage revenue AR(x)
Revenue function R(x)
Quantity x
5
AR(x) maximised when green line tangent to curve
Revenue function R(x)
Quantity x
6
dR/dxMRMarginal Revenue
AR(x)Average Revenue
Maximum of AR is when ARMR
b
a
Quantity x