If e >1 on average revenue curve, MR is _______.

positive and TR is rising

No worries! We‘ve got your back. Try BYJU‘S free classes today!

negative and TR is falling

No worries! We‘ve got your back. Try BYJU‘S free classes today!

zero and TR is maximum

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

none of the above

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C zero and TR is maximum
If the elasticity of average revenue curve is more than one then it denotes that the change in average revenue due to a unit change in the price for which it is sold in more than one. At this point the marginal revenue is zero as the total revenue reaches its maximum at this point.

Suggest Corrections

Similar questions

State, with valid reasons, which of the following statements are true or false:

a. Average Revenue curve under the Perfect Competition is a downward sloping curve.

b. AFC curve is a rectangular hyperbola curve.

c. When MR is falling but positive, TR will also be falling and positive.

The TR curve of a monopoly firm is given by the equation
$T R = - q^{2} + 12 q - 20$ , where TR is in millions of dollars

At what level of output is the revenue maximized?

Comment on the shape of the MR curve in case the TR curve is a

Join BYJU'S Learning Program