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Revenue & Producer's Equilibrium · Question 31 of 55

Question 31

HardOriginal question

Read the two statements and choose the correct option.

I. For a price taker, TR rises at a constant rate as output rises.

II. For a price taker, TR reaches a maximum and then falls.

Options for question 31

Show the answer and explanation
CorrectNot quiteAnswer A

Correct answer: A

Explanation

  1. I is true: MR equals the fixed price, so TR rises by the same amount each unit.

  2. II is false: with MR always positive, TR never stops rising.

Concept
Shape of TR for a price taker
Typical time
100 s
Your time
—
The rule this testsRevenue at a price set by the market
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Ten questions from Revenue & Producer's Equilibrium, at your own pace.

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Ten questions from Revenue & Producer's Equilibrium, at your own pace.

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