Question
What change in total revenue will result in:
- A Decrease in marginal revenue.
- An increase in marginal revenue?
| Units Sold | MR (₹) | $\text{TR}=\sum\text{MR}$ |
| 1 | 10 | 10(10 + 0) |
| 2 | 8 | 18(10 + 8) |
| 3 | 6 | 24(18 + 6) |
| 4 | 4 | 28(24 + 4) |
| 5 | 2 | 30(28 + 2) |
| Units Sold | MR (₹) | $\text{TR}=\sum\text{MR}$ |
| 1 | 10 | 10(10 + 0) |
| 2 | 12 | 22(10 + 12) |
| 3 | 14 | 36(22 + 14) |
| 4 | 16 | 52(36 + 16) |
| 5 | 19 | 71(52 + 19) |
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| Output (Units) | Total Cost (₹) | Avarage Variable Cost (₹) | Marginal Cost (₹) | Average Fixed Cost (₹) |
| 0 | 30 | | | |
| 1 | - | - | 20 | - |
| 2 | 68 | - | - | - |
| 3 | 84 | 18 | - | - |
| 4 | - | - | 18 | - |
| 5 | 125 | 19 | - | 6 |
OR
A consumer consumes good X. Explain the effect of fall in the price of related goods on the demand of X. Use diagrams.| S. No. | | (₹ in crores) |
| (i) | Government final consumption expenditure. | 4,000 |
| (ii) | Private final consumption expenditure | 35,00 |
| (iii) | Gross domestic capital formation. | 1,100 |
| (iv) | Net exports. | 500 |
| (v) | Net factor income from abroad. | 100 |
| (vi) | Net factor income from abroad. | 300 |
| (vii) | Subsidies. | 40 |
| (viii) | Change in stock. | 80 |
| (ix) | Consumption of fixed capital. | 120 |