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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 MR is positive, TR tends to increase.
Reason (R): As under monopoly, more of the commodity can be sold by lowering down the price of the commodity. Hence AR curve is downward sloping from left to right.
- 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...
When MR is positive and constant, average and total revenue will both increase at constant rate. False; because when MR is positive and constant, AR will also be positive and constant. However, TR will increase at constant rate.
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Direction: In the following questions, a statement of Assertion (A) i...
Assertion (A): When MR is positive, TR tends to increase.
Reason (R): As under monopoly, more of the commodity can be sold by lowering down the price of the commodity. Hence AR curve is downward sloping from left to right.
Explanation:
To understand the relationship between MR (Marginal Revenue) and TR (Total Revenue), it is important to first understand the concept of monopoly and the behavior of the demand curve.
Monopoly:
A monopoly refers to a market structure where there is a single seller or producer of a product or service. In a monopoly, there are no close substitutes available for the product, and the monopolist has control over the market.
AR Curve:
Under monopoly, the demand curve faced by the monopolist is the average revenue (AR) curve. It represents the price at which different quantities of the commodity can be sold. The AR curve is downward sloping from left to right because the monopolist needs to lower the price in order to sell more units of the commodity.
MR and TR:
Marginal Revenue (MR) is the additional revenue earned by the monopolist when one more unit of the product is sold. Total Revenue (TR) is the total amount of money received from selling a given quantity of the product.
Relationship between MR and TR:
When MR is positive, it means that selling one more unit of the product generates additional revenue for the monopolist. In this case, TR tends to increase because the additional revenue from selling one more unit adds to the total revenue earned.
Explanation of Assertion and Reason:
Assertion (A): When MR is positive, TR tends to increase.
This statement is true. When MR is positive, it indicates that selling an additional unit of the product generates more revenue for the monopolist. Therefore, TR tends to increase.
Reason (R): As under monopoly, more of the commodity can be sold by lowering down the price of the commodity. Hence AR curve is downward sloping from left to right.
This statement is also true. Under monopoly, the monopolist can sell more units of the commodity by lowering the price. This is because the demand for the product is more price-sensitive, and consumers are willing to buy more at lower prices. This behavior of the demand curve results in a downward-sloping AR curve.
Conclusion:
Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A). The reason explains the behavior of the AR curve, but it does not directly explain the relationship between MR and TR.
Reason (R): As under monopoly, more of the commodity can be sold by lowering down the price of the commodity. Hence AR curve is downward sloping from left to right.
Explanation:
To understand the relationship between MR (Marginal Revenue) and TR (Total Revenue), it is important to first understand the concept of monopoly and the behavior of the demand curve.
Monopoly:
A monopoly refers to a market structure where there is a single seller or producer of a product or service. In a monopoly, there are no close substitutes available for the product, and the monopolist has control over the market.
AR Curve:
Under monopoly, the demand curve faced by the monopolist is the average revenue (AR) curve. It represents the price at which different quantities of the commodity can be sold. The AR curve is downward sloping from left to right because the monopolist needs to lower the price in order to sell more units of the commodity.
MR and TR:
Marginal Revenue (MR) is the additional revenue earned by the monopolist when one more unit of the product is sold. Total Revenue (TR) is the total amount of money received from selling a given quantity of the product.
Relationship between MR and TR:
When MR is positive, it means that selling one more unit of the product generates additional revenue for the monopolist. In this case, TR tends to increase because the additional revenue from selling one more unit adds to the total revenue earned.
Explanation of Assertion and Reason:
Assertion (A): When MR is positive, TR tends to increase.
This statement is true. When MR is positive, it indicates that selling an additional unit of the product generates more revenue for the monopolist. Therefore, TR tends to increase.
Reason (R): As under monopoly, more of the commodity can be sold by lowering down the price of the commodity. Hence AR curve is downward sloping from left to right.
This statement is also true. Under monopoly, the monopolist can sell more units of the commodity by lowering the price. This is because the demand for the product is more price-sensitive, and consumers are willing to buy more at lower prices. This behavior of the demand curve results in a downward-sloping AR curve.
Conclusion:
Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A). The reason explains the behavior of the AR curve, but it does not directly explain the relationship between MR and TR.
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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 MR is positive, TR tends to increase.Reason (R): As under monopoly, more of the commodity can be sold by lowering down the price of the commodity. Hence AR curve is downward sloping from left to right.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) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): When MR is positive, TR tends to increase.Reason (R): As under monopoly, more of the commodity can be sold by lowering down the price of the commodity. Hence AR curve is downward sloping from left to right.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 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 MR is positive, TR tends to increase.Reason (R): As under monopoly, more of the commodity can be sold by lowering down the price of the commodity. Hence AR curve is downward sloping from left to right.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 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 MR is positive, TR tends to increase.Reason (R): As under monopoly, more of the commodity can be sold by lowering down the price of the commodity. Hence AR curve is downward sloping from left to right.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): When MR is positive, TR tends to increase.Reason (R): As under monopoly, more of the commodity can be sold by lowering down the price of the commodity. Hence AR curve is downward sloping from left to right.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 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 MR is positive, TR tends to increase.Reason (R): As under monopoly, more of the commodity can be sold by lowering down the price of the commodity. Hence AR curve is downward sloping from left to right.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 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 MR is positive, TR tends to increase.Reason (R): As under monopoly, more of the commodity can be sold by lowering down the price of the commodity. Hence AR curve is downward sloping from left to right.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): When MR is positive, TR tends to increase.Reason (R): As under monopoly, more of the commodity can be sold by lowering down the price of the commodity. Hence AR curve is downward sloping from left to right.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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