Revenue (Microeconomics, Class 11)

Let TR be total revenue, Q be quantity of output, and ‘n’ the number of units, then marginal revenue equals:

• (a) TRn – TRn – 1 only

• (b) Change in TR/Change in Q only

• (c) Both (a) and (b)

• (d) None

Average revenue equals:

• (a) Total revenue divided by the quantity produced

• (b) Price

• (c) Marginal Revenue divided by quantity sold

• (d) Total revenue divided by the quantity sold

If MR = 0, AR will be:

• (a) Rising

• (b) Falling

• (c) Zero

• (d) Constant

Under___ form of market P = AR = MR.

• (a) Perfect competition

• (b) Semi-perfect competition

• (c) Monopsony

• (d) Monopoly

Value of Marginal Revenue at zero level of output is generally:

• (a) One

• (b) Zero

• (c) Not defined

• (d) Infinite

When TR is rising MR will be

• (a) Falling

• (b) Rising

• (c) Constant

• (d) May rise or fall

Marginal revenue of a firm is addition to TR by selling:

• (a) An additional unit of output

• (b) Entire output

• (c) First unit of output

• (d) Both (b) and (c)

If average revenue curve is a horizontal straight line, then marginal revenue curve will be _________ and it will be the market having _________ .

• (a) Downward sloping, Perfect competition

• (b) Horizontal straight line, Perfect Competition

• (c) Upward Sloping, Imperfect Competition

• (d) Horizontal straight line, Imperfect Competition

When price falls with rise in output, then:

• (a) AR curve is steeper than MR curve

• (b) MR and AR curves coincide in a horizontal straight line parallel to the X-axis

• (c) MR curve is steeper than AR curve

• (d) None of these

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

• (a) Horizontal straight line parallel to the X-axis

• (b) Vertical straight line parallel to the Y-axis

• (c) Positively sloped straight line passing from the origin

• (d) Downward sloping straight line