Question 4
MediumOriginal questionA firm can sell more only by lowering its price.
| Output | 1 | 2 | 3 | 4 | 5 | 6 |
|---|---|---|---|---|---|---|
| Price (₹) | 20 | 18 | 16 | 14 | 12 | 10 |
What is the total revenue from selling 4 units?
Show the answer and explanation
CorrectNot quiteAnswer C
Correct answer: C
Explanation
At 4 units the price is ₹14, and every unit sells at that price.
TR = 14 × 4 = ₹56.
Worth noting
₹80 multiplies the first price (₹20) by 4; the price has fallen to ₹14 by the 4th unit.
- Concept
- TR from a price schedule
- Typical timeTypical
- 70 s
- Your timeYours
- —
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