Question 14
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 average revenue when 5 units are sold?
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
AR = price = ₹12 at 5 units (TR = 60, and 60 ÷ 5 = 12).
Worth noting
₹4 is the MR of the 5th unit (60 − 56).
- Concept
- AR from a price schedule
- Typical timeTypical
- 70 s
- Your timeYours
- —
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