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Question
Explain whether the statement is true or false with reasons.
Under all market conditions, Average revenue and marginal revenue are equal to each other.
Options
True
False
Solution
Under all market conditions, Average Revenue and Marginal revenue are equal to each other: This statement is false.
In perfect competition only, Marginal Revenue is equal to Average Revenue.
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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
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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 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
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d. Zero
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a. Perfect competition
b. Monopolistic competition
c. Oligopoly
d. All the above
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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 ______________.
Fill in the blank.
Under imperfect competition, Average Revenue (AR) remains ___________ Marginal Revenue (MR).
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.
