Question

One word answer for mr of the firm falls from rs.20 to (-) rs.20. What will be the corresponding tr, if ar = mr = rs.20 corrsponding to a specific output of 5000 units

Answer 1

Answer:

Step-by-step explanation:

MR=AR=20

AR=TR/Q

20=TR/5000

Therefore, TR=RS.1,00,000 corresponding to output of 5,000 units.

When MR of the firms falls from Rs.20 to (−)Rs.20, it implies a change in TR by Rs.40

∴TR=Rs.1,00,000−Rs.40=Rs.99,960