InterviewSolution
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InterviewSolution
This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
When price falls with rise in output, then as quantity sold increases :A. MR falls quickly than ARB. MR falls slowly than ARC. Both MR and AR fall at the same rateD. MR and AR do not change |
| Answer» Correct Answer - a | |
| 2. |
When price falls with rise in output, then :A. MR curve is steeper than AR curveB. AR curve is steeper than MR curveC. MR and AR curves coincide in a horizontal straight line parallel to the X-axisD. None of these |
| Answer» Correct Answer - a | |
| 3. |
Which of the following diagram correctly depicts the relation between AR and MR when price falls with rise in output ?A. B. C. D. |
| Answer» Correct Answer - d | |
| 4. |
Identify the correct MR curve from the following options when price remains same with ris in output :A. B. C. D. |
| Answer» Correct Answer - b | |
| 5. |
When price remains same with rise in output, AR curve is :A. Vertical straight line parallel to Y-axisB. Horizontal straight line parallel to X-axisC. Downward slopingD. Positively sloped |
| Answer» Correct Answer - b | |
| 6. |
When a firm faces perfectly elastic demand for its product, at all levels of output :A. AR `gt` MRB. AR = MRC. AR `lt` MRD. Any one of the above |
| Answer» Correct Answer - B | |
| 7. |
If AR of 5 units of output is ₹ 20 and of 7 units is ₹ 18, MR of 7 units of output is :A. 26B. 13C. 2D. `₹ -1` |
| Answer» Correct Answer - D | |
| 8. |
Complete the following table : |
| Answer» Marginal Revenue : 4, 2, 0, -2, Price or Average Revenue : 4, 3, 2, 1 | |
| 9. |
Calculate TR and AR. |
| Answer» TR: 10, 18, 24, 28, 30, 28, AR: 10, 9, 8, 7, 6, 5, 4 | |
| 10. |
A shopkeeper sold 25 calculators at the price of ₹ 125 each. His total receipts increased to ₹ 3,380 after selling 26 calculators. At what price did he sell the `26^(th)` calculator ? |
| Answer» Correct Answer - ₹ 130 | |
| 11. |
Complete the following table : |
| Answer» Price : 7, 5, 3, 1, Output: 1, 2, 3, 4, Total Revenue: 7, 10, 9, 4, Marginal Revenue: 7, 3, -1, -5 | |
| 12. |
Complete the following table : |
| Answer» AR : 6, 5, 3, 2, MR : 6, 4, 2, 0, -2, TR : 6, 10, 12, 12, 10 | |
| 13. |
Complete the following table : |
| Answer» AR: 10, 9, 8, 6, 4, MR: 10, 8, 6, 0, -4, TR: 10, 18, 24, 24, 20 | |
| 14. |
From the information given below, calculate the values of TR and MR. |
| Answer» TR : 70, 120, 150, 160, 150, 120, 70 , MR : -50, -30,-10, 10, 30, 50, 70 | |
| 15. |
Complete the following table : |
| Answer» Total Revenue : 40, 42, 42, 40, Marginal Revenue: - 2, 0, 2, - | |
| 16. |
Complete the following table : |
| Answer» Price : 5, 4, 3, 2, Output: 1, 2, 3, 4, Total Revenue: 5, 8, 9, 8, Marginal Revenue: 5, 3, 1, -1 | |
| 17. |
Marginal revenue refers to :A. Addition to total revenue when one more unit of output is produced.B. Addition to total revenue when one more unit of output is sold.C. Addition to total revenue when one more unit of variable factor is employed.D. None of these |
| Answer» Correct Answer - b | |
| 18. |
What will be the effect of the following changes in total revenue on marginal revenue ? (i) Total revenue increases at a decreasing rate. (ii) Total revenue increases at a constant rate. |
|
Answer» (i) MR falls but remains positive. (ii) MR is constant. |
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| 19. |
The MR schedule of a monopoly firm is given below. Derive the TR and AR schedules. |
| Answer» TR: -, 14, 24, 31, 36, 33, 28, AR:-, 14, 12, 10.33, 9, 7.20, 5.50, 4 | |
| 20. |
If TR = Total Revenue and Q = Quantity sold, then TR `div` Q refers to :A. Zero RevenueB. Average RevenueC. Marginal RevenueD. None of these |
| Answer» Correct Answer - b | |
| 21. |
What changes should take place in total revenue so that : (i) Marginal revenue is positive and constant, and (ii) Marginal revenue is positive and falling. |
|
Answer» (i) Marginal revenue will be positive and constant when total revenue rises at a constant rate. (ii) Marginal revenue will be positive and falling when total revenue rises at a diminishing rate. |
|
| 22. |
If total revenues is ₹ 1,00,000 when 20,000 units are sold, then average revenue is equal to :A. ₹ 1,00,000B. ₹ 20,000C. ₹ 5D. ₹ 1,20,000 |
| Answer» Correct Answer - c | |
| 23. |
When output increases from 50 units to 70 units, TR increases from ₹ 4,000 to ₹ 5,000. Calculate MR. |
|
Answer» Correct Answer - MR = ₹ 50 `("Change in Total Revenue")/("Change in number of units")=(DeltaTR)/(DeltaQ)=(5,000-4,000)/(70-50)=(1,000)/(20)= ₹ 50` |
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| 24. |
The total revenue of a firm increased by ₹ 5,400, when his sale increased from 35 units to 50 units. Calculated marginal revenue of the firm. |
|
Answer» Correct Answer - Marginal Revenue = ₹ 360 Marginal Revenue = `("Change in Total Revenue")/("Change in number of units")=(5,400)/(50-35)=(5,400)/(15)= ₹ 360` |
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| 25. |
Why AR curve under monopolistic competition is more elastic than AR curve under monopoly ? |
| Answer» AR curve under both the markets slope downwards. However, AR curve under monopolistic competition is more elastic as compared to AR curve under monopoly because of presence of close substitutes. AR curve is less elastic in monopoly because of no close substitutes. | |
| 26. |
If TR curve is a horizontal straight line parallel to the X-axis, then MR curve will:A. Coincide with X-axisB. Slope downwardsC. Slope upwardsD. horizontal straight line parallel to the X-axis |
| Answer» Correct Answer - a | |
| 27. |
Distinguish between AR and MR. |
| Answer» AR is the revenue per unit of output whereas marginal revenue is the additional revenue earned by selling one more unit of output. | |
| 28. |
Define revenue. What is total revenue ? |
|
Answer» Revenue is price x quantity. Total revenue is the receipts generated by a firm by selling a particular quantity of a commodity. |
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| 29. |
From the table given below, calculate total revenue, average revenue and marginal revenue : `{:("Price(₹)",,6,,7,,8),("Units Sold",,5,,4,,3):}` |
| Answer» `{:("Price (₹)",,"Units Sold",,"TR (₹)",,"AR (₹)",,"MR (₹)"),(6,,5,,30,,6,,"__"),(7,,4,,28,,7,,(-) 2),(8,,3,,24,,8,,(-)4):}` | |
| 30. |
From the table given below, calculate total revenue, average revenue and marginal revenue : `{:("Units sold",, 3,,4,,5), ("Price (₹)",,10,,9,,8):}` |
| Answer» `{:("Units Sold",,"Price (₹)",,"TR (₹)",,"AR (₹)",,"MR (₹)"),(3,,10,,30,,10,,"__"),(4,,9,,36,,9,,6),(5,,8,,40,,8,,4):}` | |
| 31. |
Complete the following table : `{:("Price",,"Output",,"Total Revenue",,"Marginal Revenue"),((₹),,("Units"),,(₹),,(₹)),(-,,1,,6,,-),(4,,-,,-,,2),(-,,3,,6,,-),(1,,-,,-,,(-)2):}` |
| Answer» `{:("Price",,"Output",,"Total Revenue",,"Marginal Revenue"),((₹),,("Units"),,(₹),,(₹)),(6,,1,,6,,6),(4,,2,,8,,2),(2,,3,,6,,-2),(1,,4,,4,,(-)2):}` | |
| 32. |
Complete the following table : `{:("Output (Units)",,"Average Revenue (₹)",,"Marginal Revenue (₹)",,"Total Revenue (₹)"),(1,,-,,15,,-),(2,,-,,-,,26),(3,,11,,-,,-),(4,,-,,3,,-):}` |
| Answer» `{:("Output (Units)",,"Average Revenue (₹)",,"Marginal Revenue (₹)",,"Total Revenue (₹)"),(1,,15,,15,,15),(2,,13,,11,,26),(3,,11,,7,,33),(4,,9,,3,,36):}` | |
| 33. |
Complete the following table : `{:("Output",,"Price",,"Total Revenue",,"Marginal Revenue"),(("Units"),,(₹),,(₹),,(₹)),(1,,7,,-,,-),(2,,6,,-,,-), (3,,4,,-,,-), (4,,2,,-,,-):}` |
| Answer» `{:("Output",,"Price",,"Total Revenue",,"Marginal Revenue"),(("Units"),,(₹),,(₹),,(₹)),(1,,7,,7,,7),(2,,6,,12,,5), (3,,4,,12,,0), (4,,2,,8,,(-) 4):}` | |
| 34. |
Complete the following table : `{:("Output (Units)",,"Marginal Revenue (₹)",,"Total Revenue (₹)",,"Average Revenue (₹)"),(1,,10,,-,,-),(2,,8,,-,,-),(3,,0,,-,,-),(4,,-2,,-,,-):}` |
| Answer» `{:("Output (Units)",,"Marginal Revenue (₹)",,"Total Revenue (₹)",,"Average Revenue (₹)"),(1,,10,,10,,10),(2,,8,,18,,9),(3,,0,,18,,6),(4,,-2,,16,,4):}` | |
| 35. |
Complete the following table : `{:("Units of Output",,"Total Revenue",,"Average Revenue ",,"Marginal Revenue"),(,,(₹),,(₹),,(₹)),(1,,,,10,,),(2,,,,9,,),(3,,,,9,,):}` |
| Answer» `{:("Units of Output",,"TR (₹)",,"AR (₹)",,"MR (₹)"),(1,,10,,10,,10),(2,,18,,9,,8),(3,,27,,9,,9):}` | |
| 36. |
What is revenue in microeconomics ? State the relation between marginal revenue and average revenue under perfect competition using suitable diagram or schedule. |
| Answer» Revenue refers to the total receipts of a firm generated from the sale of a product. | |
| 37. |
Price and Average Revenue are :A. Always sameB. Always differentC. sometimes sameD. Sometimes different |
| Answer» Correct Answer - A | |
| 38. |
Marginal revenue of (n-1) units is :A. `TR_n-TR_(n-1)`B. `TR_(n-1)-TR_n`C. `TR_(n-1)-TR_(n-2)`D. `TR_(n-2)- TR_(n-1)` |
| Answer» Correct Answer - C | |
| 39. |
Revenue in microeconomics means :A. Tax collected by governmentB. Market value of output produced by a firmC. Profits of a firmD. None of the above |
| Answer» Correct Answer - B | |
| 40. |
What happens to TR when MR is positive ?A. TR increasesB. TR decreasesC. TR is MaximumD. TR remains same |
| Answer» Correct Answer - a | |
| 41. |
A balloon seller has decided that we will sell all his balloons at a fixed price of ₹ 10 each. In such a case, TR curve will be :A. Horizontal straight line parallel to the X-axisB. Vertical straight line parallel to the Y-axisC. Positively sloped straight line passing from the otiginD. Downward sloping straight line |
| Answer» Correct Answer - c | |
| 42. |
Determine AR and MR. |
| Answer» AR : 20, 18, 16, 14, 12, 10, 8: MR : 20, 16, 12, 8, 4, 0, -4 | |
| 43. |
Complete the following table : |
| Answer» TR : 10, 18, 24, 28, 30, 30, 28, 24, MR: 10, 8, 6, 4, 2, 0, -2, -4: AR : 10, 9, 8, 7, 6, 5, 4, 3 | |
| 44. |
Calculate TR and MR from the following data : |
| Answer» TR : 25, 46, 63, 76, 90, 90, MR : 25, 21, 17, 13, 14, 0 | |
| 45. |
From the following data, determine TR, AR and MR. |
| Answer» TR, 100, 180, 240, 280, 300, 280, AR: 10, 20, 30, 40, 50, 60, 70: MR: - 80, -60, -40, -20, 0, 20, -1 | |
| 46. |
If average revenue curve is a horizontal straight line, then marginal revenue curve will be :A. Downward slopingB. Horizontal straight lineC. Upward SlopingD. Inversely S-shaped |
| Answer» Correct Answer - b | |
| 47. |
AR curve is downward sloping when:A. Price falls with rise in outputB. Price initially rises at an increasing rate, then at a diminishing rateC. Price remains same at all levels of outputD. None of these |
| Answer» Correct Answer - a | |