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Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
Assertion (A): A firm is able to sell more quantity of a good only by lowering the price.
Reason (R): The firm’s Marginal Revenue, as he goes on selling, would be less than Average revenue.
- a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).
- b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).
- c)Assertion (A) is true, but Reason (R) is false.
- d)Assertion (A) is false, but Reason (R) is true.
Correct answer is option 'B'. Can you explain this answer?
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Direction: In the following questions, a statement of Assertion (A) i...
The firm's marginal revenue will be equal to average revenue as marginal revenue is net addition to the revenue when an additional unit is produced.
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Direction: In the following questions, a statement of Assertion (A) i...
Assertion and Reasoning:
Explanation:
Conclusion:
Assertion (A): A firm is able to sell more quantity of a good only by lowering the price.
Reason (R): The firm’s Marginal Revenue, as he goes on selling, would be less than Average revenue.
Explanation:
When a firm lowers the price of its product, the demand for the product increases, which leads to an increase in the quantity of the product sold. However, this increase in quantity sold comes at the cost of a decrease in the price per unit, which results in a decrease in the total revenue earned by the firm. This happens because the demand curve for the product is downward sloping, which means that the price and quantity demanded are inversely proportional.
The marginal revenue (MR) of a firm is the additional revenue earned by selling one more unit of the product. As the firm goes on selling more units of the product, the marginal revenue decreases because the price per unit decreases. The average revenue (AR) of a firm is the total revenue earned by the firm divided by the total quantity sold. The AR curve is the same as the demand curve for the product.
When the MR curve lies below the AR curve, the AR curve is decreasing. This means that the firm is facing a downward-sloping demand curve. Therefore, the firm can increase its total revenue by lowering the price of the product, which would lead to an increase in the quantity sold.
Conclusion:
Both Assertion (A) and Reason (R) are true, but Reason (R) is the correct explanation of Assertion (A). Therefore, option (B) is the correct answer.
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Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): A firm is able to sell more quantity of a good only by lowering the price.Reason (R): The firm’s Marginal Revenue, as he goes on selling, would be less than Average revenue.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): A firm is able to sell more quantity of a good only by lowering the price.Reason (R): The firm’s Marginal Revenue, as he goes on selling, would be less than Average revenue.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): A firm is able to sell more quantity of a good only by lowering the price.Reason (R): The firm’s Marginal Revenue, as he goes on selling, would be less than Average revenue.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer?.
Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): A firm is able to sell more quantity of a good only by lowering the price.Reason (R): The firm’s Marginal Revenue, as he goes on selling, would be less than Average revenue.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): A firm is able to sell more quantity of a good only by lowering the price.Reason (R): The firm’s Marginal Revenue, as he goes on selling, would be less than Average revenue.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): A firm is able to sell more quantity of a good only by lowering the price.Reason (R): The firm’s Marginal Revenue, as he goes on selling, would be less than Average revenue.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer?.
Solutions for Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): A firm is able to sell more quantity of a good only by lowering the price.Reason (R): The firm’s Marginal Revenue, as he goes on selling, would be less than Average revenue.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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Here you can find the meaning of Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): A firm is able to sell more quantity of a good only by lowering the price.Reason (R): The firm’s Marginal Revenue, as he goes on selling, would be less than Average revenue.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): A firm is able to sell more quantity of a good only by lowering the price.Reason (R): The firm’s Marginal Revenue, as he goes on selling, would be less than Average revenue.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): A firm is able to sell more quantity of a good only by lowering the price.Reason (R): The firm’s Marginal Revenue, as he goes on selling, would be less than Average revenue.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): A firm is able to sell more quantity of a good only by lowering the price.Reason (R): The firm’s Marginal Revenue, as he goes on selling, would be less than Average revenue.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
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