How do changes in marginal revenue affect total revenue ?

1.	How do changes in marginal revenue affect total revenue ?
Answer» <html><body><p></p>Solution :MR is the change in total <a href="https://interviewquestions.tuteehub.com/tag/revenue-1188040" style="font-weight:bold;" target="_blank" title="Click to know more about REVENUE">REVENUE</a> when one more unit of output is sold. In other words, MR is the rate of change of TR.So, when (i) MR is <a href="https://interviewquestions.tuteehub.com/tag/positive-1159908" style="font-weight:bold;" target="_blank" title="Click to know more about POSITIVE">POSITIVE</a> and is increasing, TR increases at an increasing rate. (<a href="https://interviewquestions.tuteehub.com/tag/ii-1036832" style="font-weight:bold;" target="_blank" title="Click to know more about II">II</a>) MR is positive but is <a href="https://interviewquestions.tuteehub.com/tag/decreasing-946148" style="font-weight:bold;" target="_blank" title="Click to know more about DECREASING">DECREASING</a>, TR increases at a diminishing rate. (iii) MR is zero, TR is constant. (iv) MR becomes negative, TR <a href="https://interviewquestions.tuteehub.com/tag/starts-1224822" style="font-weight:bold;" target="_blank" title="Click to know more about STARTS">STARTS</a> falling.</body></html>

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