Download App

Production and cost — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsProduction and cost3 Marks
Question
What change in Total Revenue will result in case of:
  1. Decrease in Marginal Revenue.
  2. Increase in Marginal Revenue.
✓

Answer

  1. An increase in Total Revenue at a diminishing rate or a decrease in Total Revenue will result from decrease in Marginal Revenue. In other words, Total Revenue increases at a decreasing rate or even falls, when Marginal Revenue falls.
  2. An increase in Total Revenue at an increasing rate will result in an increase in Marginal Revenue. In other words, Marginal Revenue increases, when Total Revenue increases at an increasing rate.

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 Production and cost→Production and cost — all question types→Economics STD 11 Commerce question papers→CBSE Board STD 11 Commerce question papers→CBSE Board question paper generator→

Similar questions

A consumer consumes only two goods $X$ and $Y$ and is in equilibrium. Price of $X$ falls. Explain the reaction of the consumer through the utility analysis.
→
Distinguish between normal goods and inferior goods, with examples.
→
If a good can be used for many purposes, the demand for it will be elastic. Why?
→
Explain the conditions of consumer's equilibrium under utility analysis.
→
Define change in quantity demanded.
→
Why is the number of firms small in oligopoly? Explain.
→
Will a profit-maximising firm in a competitive market ever produce a positive level of output in the range where the marginal cost is falling? Give an explanation.
→
What change will take place in marginal product when total product increases at a diminishing rate?
→
A good is an “inferior' good for one and at the same time a 'normal' good for another consumer. Do you agree? Explain.
→
Explain the effect of fall in prices of other goods on the supply of a given good.
→