Q2 of 25 Page 1

If the Total Revenue of a firm increases by Rs. 45,000 due to an increase in the sale of Good X from 50 units to 65 units, then marginal revenue will be _____________?

The change in Total Revenue of the firm from 50 to 65 units is 45000.


Marginal Revenue is the Change in TR divided by Change in Quantity


Change in Quantity = 65-50=15


Therefore MR = 45000/15


= 3000


Therefore the Marginal Revenue is 3000.


More from this chapter

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1

State the reason why Total Variable Cost (TVC) curve and Total Cost (TC) curve are parallel to each other.

OR


State the reason behind U-shape nature of the Average Variable Cost curve.

 3

A Production Possibility Curve would be _______ curve if all the available resources in an economy are equally efficient to produce both the goods. (Choose the correct alternative)

a. A straight line


b. Convex to origin


c. Concave to origin


d. Upward sloping

 4

Which of the following is a variable cost?

a. Salary of permanent staff


b. Rent of premises


c. License fees


d. Wages


OR


If Total Variable Cost and Total Fixed Cost of producing 10 units are 500 & 200, the value of the average cost would be?


a) 50


b) 70


c) 20


d) 80

 5

Distinguish between Normative Economics and Positive Economics, with suitable examples.

OR


Why do central problems arise? Discuss briefly.