What is the behaviour of marginal revenue in the market in which a firm can sell any quantity of the output it produces at a given price.
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How are the total revenue of a firm, market price, and the quantity sold by that firm related to each other?
Total revenue is defined as the total sales proceeds of a producer by selling corresponding level of output. In other words, it is defined as price times the quantity of...
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A firm earns a revenue of Rs 50 when the market price of a good is Rs 10. The market price increase to Rs 15
At Price, P1 = Rs 10 Total Revenue, TR1 = P1 x Q1 = 50 = TR1/P1 = Q1 = 50/10 = Q1 = Q1 = 5units At Price, = Rs 15 Total Revenue, TR2 =...
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At the market price of Rs 10, a firm supplies 4 units of output. The market price increases to Rs 30.
Initial Price, P1 = Rs 10 Initial Output, Q1 = 4 units Final Price, P2 = Rs 30 ΔP = P2 - P1 = Rs 30 - 10 = Rs 20 Elasticity of supply,es =...
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At a certain level of output, the Marginal Cost of a firm is above its Marginal Revenue. Can this be its equilibrium output?
No, it cannot be its equilibrium output because the MC exceeds the MR. The firm is running a loss.
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What is behaviour of average revenue in a market in which a firm can sell more only by lowering the price?
Average revenue continuously decreases in such a market in which a firm can sell more only by lowering the price.
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What is the behaviour of marginal revenue in a market in which a firm can sell
Marginal revenue is constant at all levels of output in such a market in which a firm can sell any quantity of the output at a given price.
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What is the behaviour of average revenue in a market in which a firm can sell any quantity of a good at a given price?
Average revenue is constant at all levels of output in a market in which a firm can sell any quantity of a good at a given price.
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What is the relation between market price and marginal revenue of a price-taking firm?
For a price taking firm, market price is equal to marginal revenue.
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How, are the total revenue of a firm, market price and the quantity sold by the firm related to each other?
Total revenue is the multiplication of quantity sold and market price, whereas market price is the ratio of total revenue and quantity sold. TR = P X Q P = △TR/△Q
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What is the behaviour of average revenue in the market, in which a firm can sell more only by lowering the price?
Average revenue continuously falls in the market, in which a firm can sell more only by lowering the price.
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