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Production and cost — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsProduction and cost2 Marks
Question
Explain the relationship between Marginal Revenue (MR) and Total Revenue (TR).
✓

Answer

Relationship between Marginal Revenue and Total Revenue is as follows:
  1. TR increases at increasing rate, if MR is increasing.
  2. TR increases at diminishing rate, if MR is diminishing.
  3. TR is constant and maximum, if MR is zero.
  4. TR decreases, when MR becomes negative.

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