Economics – 11th Jayshree Periwal High School Worksheet-10

(Micro) REVENUE (2021-22)

Very Short Answer Questions (1 mark each)

1. What is meant by revenue of a firm?

2. How will you estimate total revenue?

3. How will you estimate average revenue?

4. How will you estimate marginal revenue?

5. What is the shape of AR and MR curves under perfect competition?

6. What is the shape of total revenue curve facing a competitive firm?

Short Answer Type Questions (3 to 4 Marks)

1. Define average revenue. Show that average revenue and price are same.

2. Define marginal revenue. What is its relationship with average revenue under perfect

competition?

3. What change in total revenue will result when Marginal revenue is constant.

4. Show the relationship between total revenue, average revenue and marginal revenue under

perfect competition.

5. Why is the total revenue curve facing a competitive firm a straight line passing through the

origin?

6. What will be the effect of the following changes in total revenue on marginal revenue,

when Total revenue increases at a constant rate.

7. Complete the following table:

Units of output Total Revenue (Rs.) Average Revenue Marginal Revenue (Rs.)

(Rs.)

1 10

2 10

3 10

8. Complete the following table:

 Output (units) Price (Rs.) Marginal Revenue (Rs.) Total Revenue (Rs.)

1 — 10 —

2 10 — —

3 — — 30

4 — 10 —

9. Compete the following table —

Output (units) MR (Rs.) TR (Rs.) AR (Rs.)

1 — — 10

2 10 — —

3 — 30 —

4 10 — —