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प्रश्न
A firm is able to sell more quantity of a good only by lowering the price. The firm’s marginal revenue, as he goes on selling, would be :(Choose the correct alternative)
a. Greater than average revenue
b. Less than average revenue
c. Equal to average revenue
d. Zero
उत्तर
The correct option is (b). A firm can sell more quantity of a good only by lowering the price of the good. There is a negative relationship between the price of the good and the demand for the good in a monopoly market. If the average revenue falls, then the marginal revenue also falls but faster than AR and therefore MR < AR.
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संबंधित प्रश्न
Suppose total revenue is rising at a constant rate as more units of a commodity are sold, marginal revenue would be:
(a) Greater than average revenue
(b) Equal to average revenue
(c) Less than average revenue
(d) Rising
What is meant by revenue in microeconomics?
State the relation between marginal revenue and average revenue.
Under which market form a firm's marginal revenue is always equal to price?
What is the behaviour of average revenue in a market in which a firm can sell more only by lowering the price?
A firm is able to sell any quantity of a good at a given price. The firm's marginal revenue will be : (Choose the correct alternative):
(a) Greater than Average Revenue
(b) Less than Average Revenue
(c) Equal to Average Revenue
(d) Zero
Marginal revenue of a firm is constant throughout under : (choose the correct alternative)
a. Perfect competition
b. Monopolistic competition
c. Oligopoly
d. All the above
Define Average Revenue. Show that Average Revenue and Price are same.
Define marginal revenue.
Answer the following question.
Name the market where average revenue is equal to marginal revenue. Give a reason for your answer.
Fill in the blank.
Under imperfect competition, Average Revenue (AR) remains ___________ Marginal Revenue (MR).
Explain whether the statement is true or false with reasons.
Under all market conditions, Average revenue and marginal revenue are equal to each other.
Assertion: A firm is able to sell more quantity of a commodity by reducing its price.
Reason: As it sells additional units of the commodity at a lower price, the firm’s marginal revenue will be less than its average revenue.
