A price-taking firm sells 50 units at ₹12 each. What are its TR, AR and the MR of the 50th unit?

TR ₹600, AR ₹12, MR ₹0Correct answerYour answerTR ₹600, AR ₹12, MR ₹12Correct answerYour answerTR ₹62, AR ₹12, MR ₹12Correct answerYour answerTR ₹600, AR ₹50, MR ₹12Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

TR = 12 × 50 = ₹600; AR = 600 ÷ 50 = ₹12.
The 50th unit sells for ₹12 like the rest, so MR = ₹12.

Concept: Revenue of a price taker
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsRevenue at a price set by the market

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A price-taking firm sells 50 units at ₹12 each. What are its TR, AR and the MR of the 50th unit?

Explanation