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Question
Answer the following question.
Name the market where average revenue is equal to marginal revenue. Give a reason for your answer.
Solution
Perfect Competition: Under perfect competition, AR or price remains fixed for the firm. So MR will also be constant. Hence AR = MR.
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RELATED QUESTIONS
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
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
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Marginal revenue of a firm is constant throughout under : (choose the correct alternative)
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b. Monopolistic competition
c. Oligopoly
d. All the above
Define Average Revenue. Show that Average Revenue and Price are same.
Define marginal revenue.
From the following information about a firm, find the firm's equilibrium output in terms of marginal cost and marginal revenue. Give reasons. Also, find profit at this output
| Output (units) | Total Revenue (Rs) |
Total Cost (Rs) |
| 1 | 6 | 7 |
| 2 | 12 | 13 |
| 3 | 18 | 17 |
| 4 | 24 | 23 |
| 5 | 30 | 31 |
Choose the correct answer from given options
The Total Revenue earned by selling 20 units is ₹ 700. Marginal Revenue earned by selling the 21st unit is ₹ 70. The value of Total Revenue earned by selling total 21 units will be ______________.
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.
