Revenue

Revenue =

• Costs - Profit

• Costs + Profit

• Costs x profit

• Costs / Profit

When MR is zero, then,

• TR is minimum

• TR is 0

• TR is maximum

• TR is equal to MR

Average revenue is equal to

• Price

• Total revenue

• Total cost

Total revenue curve in perfect market is

• Upward sloping

• Downward sloping

• Both

Which of the following statements is appropriate in case of monopoly?

• AR curve slopes upward while MR curve slopes downward

• Slopes of both AR and MR curves is upwards

• Slope of both AR & MR curve is downwards & MR curve is below AR curve

• Slope of both AR & MR curve is downwards & MR curve is above AR curve

Under perfect competition:

• MR curve is below AR curve

• Price = AR = MR

• AR remains constant

• AR is zero

When a firm is able to sell more quantity of output at the same price, then:

• AR>MR

• AR=MR

• AR<MR

• none of these

Write T or F with a reason: AR = 0, when TR is maximum

Answer explanation

False. When TR is maximum, MR is 0

Write T or F with reason: Under perfect competition, AR & MR curves tend to slope downwards

Answer explanation

False. They are parallel to the x axis

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

• horizontal straight line parallel to x axis

• Vertical straight line parallel to Y axis

• Positively sloped straight line passing from the point of origin

• Downward sloping straight line