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Revenue & Producer's Equilibrium · Question 16 of 55

Question 16

MediumOriginal question

A firm's AR is ₹50 at every level of output. Its MR is

Options for question 16

Show the answer and explanation
CorrectNot quiteAnswer C

Correct answer: C

Explanation

  1. If every unit sells for ₹50, each extra unit adds exactly ₹50 to TR.

  2. A constant AR means MR = AR.

Concept
Constant AR and MR
Typical time
70 s
Your time
—
The rule this testsTotal, average and marginal revenue
Practise this chapter →

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

Practise this chapter →

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