Revenue

A balloon seller has decided that he will sell all his balloons at a fixed of Rs.10 each. In such a case, TR curve will be:

• Horizontal straight line parallel to the X-axis

• Vertical straight line parallel to the Y-axis

• Positively sloped straight line passing from the origin

• Downward sloping straight line

At any given level of a firm's output, marginal revenue is the revenue earned by selling.

• Entire output

• Additional unit of output

• Both (i) and (ii)

• Neither (i) nor (ii)

When price remains same with rise in output, AR curve:

• Is vertical straight line parallel to Y-axis

• Is horizontal straight line parallel to X-axis

• Is downward sloping

• Coincide with MR curve

If average revenue curve is a horizontal straight line, then marginal revenue curve will be:

• Downward sloping

• Horizontal straight line

• Upward Sloping

• Inversely S-shaped

The Total Revenue earned by selling 20 units is Rs.700. Marginal Revenue earned by selling the 21st unit is Rs.70. The value of Total Revenue earned by selling total 21 units will be _____________.

• Rs.721

• Rs.630

• Rs.770

• Rs.720

When price falls with rise in output, then as quantity sold increases:

• MR falls quickly than AR

• MR falls slowly than AR

• Both AR and MR fall at the same rate

• Both MR and AR slope downwards

If TR=Total Revenue and Q=Quantity sold, the TR/Q refers to:

• Zero Revenue

• Average Revenue

• Marginal Revenue

• None of these

When 5 units of a 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/unit

• Rs.20 / unit

• Rs.18/unit

• Rs.12/unit

If the Marginal Revenue curve is parallel to the X-axis, the price of the commodity would be _______________________.

• Equal to Marginal Revenue

• More than Marginal Revenue

• Zero

• Less than Marginal Revenue

What happens to TR when MR is positive?

• TR increases

• TR decreases

• TR is maximum

• TR remains same