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Marginal revenue for any quantity level can be measured by the slope of the total revenue curve.
- a)False
- b)True
- c)Can’t say
- d)None of these
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Marginal revenue for any quantity level can be measured by the slope o...
Explanation:
The statement is true. The marginal revenue for any quantity level can indeed be measured by the slope of the total revenue curve. Here's why:
1. Definition of marginal revenue: Marginal revenue is the additional revenue generated by selling one more unit of a product.
2. Total revenue curve: The total revenue curve shows the total amount of revenue generated at each quantity level.
3. Slope of the total revenue curve: The slope of a curve represents the rate of change. In this case, the slope of the total revenue curve represents how much the total revenue changes as the quantity level increases.
4. Marginal revenue and slope: The marginal revenue is equal to the slope of the total revenue curve at any given quantity level. This means that the change in total revenue resulting from selling one more unit of a product is equal to the slope of the total revenue curve at that quantity level.
5. Graphical representation: Graphically, the total revenue curve is an upward-sloping curve. The marginal revenue curve, on the other hand, starts at the same point as the total revenue curve but has a downward slope. The point where the marginal revenue curve intersects the x-axis (quantity level) is the profit-maximizing quantity level for the firm.
In conclusion, the slope of the total revenue curve does indeed measure the marginal revenue for any quantity level.
The statement is true. The marginal revenue for any quantity level can indeed be measured by the slope of the total revenue curve. Here's why:
1. Definition of marginal revenue: Marginal revenue is the additional revenue generated by selling one more unit of a product.
2. Total revenue curve: The total revenue curve shows the total amount of revenue generated at each quantity level.
3. Slope of the total revenue curve: The slope of a curve represents the rate of change. In this case, the slope of the total revenue curve represents how much the total revenue changes as the quantity level increases.
4. Marginal revenue and slope: The marginal revenue is equal to the slope of the total revenue curve at any given quantity level. This means that the change in total revenue resulting from selling one more unit of a product is equal to the slope of the total revenue curve at that quantity level.
5. Graphical representation: Graphically, the total revenue curve is an upward-sloping curve. The marginal revenue curve, on the other hand, starts at the same point as the total revenue curve but has a downward slope. The point where the marginal revenue curve intersects the x-axis (quantity level) is the profit-maximizing quantity level for the firm.
In conclusion, the slope of the total revenue curve does indeed measure the marginal revenue for any quantity level.
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Marginal revenue for any quantity level can be measured by the slope o...
B) True
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Marginal revenue for any quantity level can be measured by the slope of the total revenue curve.a)Falseb)Truec)Can’t sayd)None of theseCorrect answer is option 'B'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Marginal revenue for any quantity level can be measured by the slope of the total revenue curve.a)Falseb)Truec)Can’t sayd)None of theseCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Marginal revenue for any quantity level can be measured by the slope of the total revenue curve.a)Falseb)Truec)Can’t sayd)None of theseCorrect answer is option 'B'. Can you explain this answer?.
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