Download App

The theory of the firm under perfect competition — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsThe theory of the firm under perfect competition3 Marks
Question
Define TR, AR and MR.
✓

Answer

Total revenue refers to the total amount of money received by the firm from the sale of its product. It is obtained by multiplying the price per unit of commodity with the quantity of output sold.

TR = Price × Output = P × Q,

Average revenue refers to revenue per unit of commodity sold. It is calculated by dividing the TR by the number of units sold.

$\text{AR}=\frac{\text{TR}}{\text{No. of Units Sold}}=\text{Price}$

Marginal revenue refers to the addition made to TR when one more unit of a commodity is sold.

MRn. = TRn. - TRn─1

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "3 Marks Question" from The theory of the firm under perfect competition→The theory of the firm under perfect competition — all question types→Economics STD 12 Humanities & Commerce question papers→Rajasthan Board STD 12 Humanities & Commerce question papers→Rajasthan Board question paper generator→

Similar questions

The price of a commodity is ₹ 12 per unit and its quantity supplied is 500 units. When its price rises to ₹ 15 per unit, its quantity supplied rises to 650 units. Calculate its price elasticity of supply. Is the supply elastic?
→
Explain the credit creation role of commercial banks with the help of a numerical example. Explain the credit creation role of commercial banks with the help of a numerical example.
→
When do we say there is excess supply for a commodity in the market?
→
What are non-debt creating capital receipts? Give two examples of such receipts.
→
At a given price of a commodity, there is excess supply. Is this an equilibrium price? If not, how will the equilibrium price be reached?
→
Give meaning of money. Explain the ‘store of value’ function of money.
→
Define investment multiplier. Explain the relationship between marginal propensity to save and investment multiplier.
→
What is the value of the MR when the demand curve is elastic?
→
Government of India has recently launched 'Jan-Dhan Yojna' aimed at every household in the country to have at least one bank account. Explain how deposits made under the plan are going to affect national income of the country.
→
Explain the implication of the following: The feature of ‘no close substitutes' under monopoly.
→