MR of the firm falls from $R s . 20$ to $(-) R s . 20$ . Find the corresponding $T R$ , if $A R = M R = R s .20$ corresponding to a specific output of $5, 000$ units.

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Solution

MR=AR=20
AR=TR/Q
20=TR/5000
Therefore, TR=RS.1,00,000 corresponding to output of 5,000 units.
When MR of the firms falls from Rs.20 to (−)Rs.20, it implies a change in TR by Rs.40
.
∴TR=Rs.1,00,000−Rs.40=Rs.99,960
.

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MR of the firm falls from Rs.20 to (−)Rs.20. Find the corresponding TR, if AR=MR=Rs.20 corresponding to a specific output of 5,000 units.

MR=AR=20AR=TR/Q20=TR/5000Therefore, TR=RS.1,00,000 corresponding to output of 5,000 units.When MR of the firms falls from Rs.20 to (−)Rs.20, it implies a change in TR by Rs.40.∴TR=Rs.1,00,000−Rs.40=Rs.99,960.

MR of the firm falls from $R s . 20$ to $(-) R s . 20$ . Find the corresponding $T R$ , if $A R = M R = R s .20$ corresponding to a specific output of $5, 000$ units.

MR=AR=20
AR=TR/Q
20=TR/5000
Therefore, TR=RS.1,00,000 corresponding to output of 5,000 units.
When MR of the firms falls from Rs.20 to (−)Rs.20, it implies a change in TR by Rs.40
.
∴TR=Rs.1,00,000−Rs.40=Rs.99,960
.