17 Questions
What does revenue refer to in economics?
The amount received by the firm from selling a commodity
How is Total Revenue calculated for a producer?
TR = Price x Quantity
What does Marginal Revenue represent?
The additional revenue from selling one more unit of output
In a perfect market, what relationship exists between Average Revenue (AR) and Marginal Revenue (MR)?
AR = MR
How is Average Revenue calculated?
AR = Price x Quantity
What happens to Average Revenue and Marginal Revenue when the price is constant in a perfect market?
AR = MR
What happens to Marginal Revenue (MR) when Total Revenue (TR) increases at a decreasing rate?
MR decreases
What is the relationship between Average Revenue (AR) and Marginal Revenue (MR) when AR is constant?
MR is constant
What is the condition for MR to be zero in relation to TR?
When TR is maximum
What can be said about the rate of decrease in Average Revenue (AR) compared to the rate of decrease in Marginal Revenue (MR)?
Rate of decrease in AR is less, rate of decrease in MR is more
What happens to Marginal Revenue (MR) when Total Revenue (TR) declines?
MR becomes negative
What relationship between price and demand is highlighted in the text?
They are negatively related
In an imperfect market, what should a producer do to increase revenue?
Decrease the price
What happens to Total Revenue when the price of a commodity decreases?
Total Revenue increases at a diminishing rate
What does TR stand for in the provided table?
Total Revenue
In the given scenario, what does AR always equal to?
Price
How do both AR and MR react when the price of a commodity decreases?
Both AR and MR decrease
Learn about revenue concepts in microeconomics for Class 11, including total revenue, profit, cost, and marginal revenue. Understand how revenue is calculated and its importance in business economics.
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