ECONOMICS TEST ( REVENUE)

WHEN 5 UNITS OF GOOD IS SOLD, TOTAL REVENUE IS RS 100. WHEN 6 UNITS ARE SOLD, MARGINAL REVENUE IS RS 8. AT WHAT PRICE ARE 6 UNITS SOLD?

• RS 28 PER UNIT

• RS 20 PER UNIT

• RS 18 PER UNIT

• RS 12 PER UNIT

IF TR CURVE IS A HORIZONTAL STRAIGHT LINE PARALLEL TO X- AXIS , THEN MR CURVE WILL

• CONCIDE WITH X AXIS

• SLOPE DOWNWARDS

• SLOPE UPWARDS

• HORIZONTAL LINE PARALLEL TO X- AXIS

A FIRM CAN SELL MORE AT THE SAME PRICE R 10 . WHAT WILL BE THE MARGINAL REVENUE BY SELLING 20TH UNIT?

• RS 2

• RS 200

• RS 210

• RS 10

WHEN MR REMAINS SAME, TR INCREASES AT :

• CONSTANT RATE

• DECREASING RATE

• INCREASING RATE

• NONE OF THESE

WHEN TR IS CONSTANT , WHAT WILL BE THE EFFECT ON AVERAGE REVENUE?

• AR WILL FALL

• AR WILL INCREASE

• AR WILL ALSO BE CONSTANT

• NO EFFECT ON AR

WHEN TR RISES AT DECREASING RATE , MR ______________

IF THE MR CURVE IS PARALLEL TO THE X-AXIS , THE PRICE OF THE COMMODITY WOULD BE ______________

• EQUAL TO MR

• MORE THAN MR

• ZERO

• LESS THAN MR

WHEN TR RISES AT DECREASING RATE WHAT IS THE BEHAVIOUR OF MR?

• MR RISES

• MR IS CONSTANT

• MR FALLS

• MR FALLS AND CAN BECOME NEGATIVE

THE MR CURVE OF A FIRM WHICH CAN SELL MORE OUTPUT AT THE SAME PRICE IS THE SAME AS THE _____________

• AR CURVE

• DEMAND CURVE

• PRICE LINE

• ALL OF THESE

SUPPOSE TR IS RISING AT A CONSTANT RATE AS MORE AND MORE UNITS OF A COMMODITY ARE SOLD, MR WOULD BE

• GREATER THAN AR

• EQUAL TO AR

• LESS THAN AR

• RISING