Revenue

There is no content available!

To Access the full content, Please Purchase

  • Q1

    With an increase in quantity sold:

    Marks:1
    Answer:

    MR falls slowly than AR

    Explanation:

    As, MR is the change in TR resulting from the sale of an additional unit of the commodity. With increase in quantity sold total revenue increases and marginal revenue falls but the rate of decrease in MR is faster than the rate of increase in TR.

     

    View Answer
  • Q2

    Abnormal profits of firms will result in

    Marks:1
    Answer:

    increase in the number of firms.

    Explanation:

    If the firms are earning abnormal profit then other firms will attracted to enter the industry to earn abnormal profit. Thus, the total number of firms in the industry will increase.

    View Answer
  • Q3

    In case of abnormal profits

    Marks:1
    Answer:

    revenue is more than cost.

    Explanation:

    Abnormal profit means excess of total revenue over total costs.

    View Answer
  • Q4

    General profit maximizing condition of a firm is:

    Marks:1
    Answer:

    MR= MC and MC is rising.

    Explanation:

    Profit maximisation conditions of the firm takes place at the point where, MC=MR and MC is cutting MR from below or MC is rising.

    View Answer
  • Q5

    When marginal revenue becomes negative, total revenue is:

    Marks:1
    Answer:

    decreasing

    Explanation:

    Marginal revenue is an addition made to the total revenue by selling an additional unit of a product. Thus, when TR starts falling, MR becomes negative.

    View Answer