Question 6
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 |
At what output is total revenue at its maximum?
Show the answer and explanation
CorrectNot quiteAnswer C
Correct answer: C
Explanation
TR: 20, 36, 48, 56, 60, 60. MR: 20, 16, 12, 8, 4, 0.
TR peaks at ₹60 and the 6th unit adds nothing (MR = 0).
- Concept
- Maximum TR and zero MR
- Typical timeTypical
- 70 s
- Your timeYours
- —
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