Tag: revenue and revenue curves

Questions Related to revenue and revenue curves

 The ________ curve will lie exactly on the market demand curve.

  1. TR

  2. MR

  3. AR

  4. none of these


Correct Option: C

Which of the following is true?

  1. AR= Price

  2. MR can be negative

  3. AR can be negative

  4. TR can be negative


Correct Option: A,B

The actual return of an investor is reduced sometimes as the prices of the commodities go up all of a sudden. In financial sector this type of phenomenon is known as _____________.

  1. probability risk

  2. market risk

  3. inflation risk

  4. credit risk


Correct Option: B

Change in TR due to the sale of an additional unit is termed _________.

  1. average revenue

  2. marginal revenue

  3. additional demand

  4. both B and C


Correct Option: B

When the demand curve of a pure monopoly firm is elastic, marginal revenue will be _________.

  1. negative

  2. positive

  3. zero

  4. any of the above


Correct Option: B

For a monopoly firm the marginal revenue curve _________.

  1. overlaps AR curve

  2. is above the AR curve

  3. lies half way between AR curve and the Y axis

  4. is parallel to X axis


Correct Option: C

The marginal revenue curve of first degree price discriminating monopoly is __________.

  1. U shaped

  2. straight line

  3. same as its supply curve

  4. equal to its demand curve


Correct Option: D

Marginal revenue of a pure monopoly is less than its price because _________.

  1. to sell more it reduces prices

  2. fear of government intervention

  3. fear of losing customer base

  4. its commitment toward social justice


Correct Option: A

Which of the following faces a downward sloping demand curve?

  1. Firm in a competitive market

  2. Firm in a monopoly market

  3. Both (A) and (B)

  4. None of the above


Correct Option: B

Average revenue of a monopolist firm is _________.

  1. always more than the marginal revenue

  2. always less than the marginal revenue

  3. equal to marginal revenue

  4. any of the above


Correct Option: D