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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): When 5 units of a good are sold at ₹ 20, total revenue is ₹ 100.
Reason (R): Total revenue is the revenue earned by the firm from the total amount of product sold by it.
  • 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 'A'. Can you explain this answer?
Verified Answer
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: When 5 units of a good are sold at ₹ 20, total revenue is ₹ 100.
Reason: Total revenue is the revenue earned by the firm from the total amount of product sold by it.

Explanation:
Definition of Revenue:
Revenue refers to the total income generated by a firm from the sale of its goods or services. It is calculated by multiplying the price per unit by the quantity of units sold.

Explanation of Assertion:
The assertion states that when 5 units of a good are sold at ₹ 20, the total revenue is ₹ 100. This can be calculated by multiplying the price per unit (₹ 20) by the quantity of units sold (5).

Total Revenue Calculation:
Price per unit = ₹ 20
Quantity of units sold = 5
Total revenue = Price per unit * Quantity of units sold
= ₹ 20 * 5
= ₹ 100

Explanation of Reason:
The reason provided states that total revenue is the revenue earned by the firm from the total amount of product sold by it. This is a correct explanation because total revenue is calculated by multiplying the price per unit by the quantity of units sold. It represents the total income generated by the firm from the sale of its goods or services.

Conclusion:
Both the assertion and reason are true, and the reason correctly explains the assertion. When 5 units of a good are sold at ₹ 20, the total revenue is ₹ 100, and total revenue is indeed the revenue earned by the firm from the total amount of product sold by it. Therefore, option (a) 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): When 5 units of a good are sold at ₹ 20, total revenue is ₹ 100.Reason (R): Total revenue is the revenue earned by the firm from the total amount of product sold by it.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 'A'. Can you explain this answer?
Question Description
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): When 5 units of a good are sold at ₹ 20, total revenue is ₹ 100.Reason (R): Total revenue is the revenue earned by the firm from the total amount of product sold by it.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 'A'. Can you explain this answer? for Commerce 2024 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): When 5 units of a good are sold at ₹ 20, total revenue is ₹ 100.Reason (R): Total revenue is the revenue earned by the firm from the total amount of product sold by it.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 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 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): When 5 units of a good are sold at ₹ 20, total revenue is ₹ 100.Reason (R): Total revenue is the revenue earned by the firm from the total amount of product sold by it.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 'A'. Can you explain this answer?.
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