Revenue Concepts

Economics ⇒ Consumer and Producer Behaviour

Revenue Concepts starts at 11 and continues till grade 12. QuestionsToday has an evolving set of questions to continuously challenge students so that their knowledge grows in Revenue Concepts. How you perform is determined by your score and the time you take. When you play a quiz, your answers are evaluated in concept instead of actual words and definitions used.

See sample questions for grade 12

A firm sells 10 units at ₹50 each. If the price falls to ₹48 and it sells 11 units, what is the marginal revenue of the 11th unit?

A firm’s total revenue at 3 units is ₹90, and at 4 units is ₹120. What is the average revenue at 4 units?

A firm’s total revenue at 5 units is ₹250 and at 6 units is ₹270. What is the marginal revenue of the 6th unit?

A firm’s total revenue at 7 units is ₹210, and at 8 units is ₹208. What is the marginal revenue of the 8th unit?

A monopolist faces the following demand schedule: At 1 unit, price is ₹10; at 2 units, price is ₹9. What is the marginal revenue when output increases from 1 to 2 units?

Define total revenue. How is it calculated?

Describe the relationship between price elasticity of demand and marginal revenue.

Describe the shape of the total revenue curve under perfect competition.

Explain the relationship between total revenue, average revenue, and marginal revenue.

Explain the significance of marginal revenue in a firm’s decision-making process.

Explain why marginal revenue falls faster than average revenue under monopoly.

Explain why, under perfect competition, marginal revenue remains constant as output increases.

Explain why, under perfect competition, the demand curve is also the average revenue curve for a firm.

If a firm sells 100 units of a product at ₹20 per unit, what is its total revenue?

If a firm’s average revenue is ₹40 and it sells 15 units, what is its total revenue?

If a firm’s total revenue at 2 units is ₹60 and at 3 units is ₹90, what is the average revenue at 3 units?

If a firm’s total revenue increases from ₹500 to ₹520 when output increases from 25 to 26 units, what is the marginal revenue of the 26th unit?

If a firm’s total revenue remains constant as output increases, what is the value of marginal revenue?

If the average revenue curve is a straight line parallel to the X-axis, what can you say about the market structure?

If the price elasticity of demand is greater than 1, what can you say about marginal revenue?