ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Marginal revenue is the increase in revenue that results from the sale of one additional unit of output. While marginal revenue can remain constant over a certain level of output, it follows from the law of diminishing returns and will eventually slow down as the output level increases.

Detailed explanation-2: -Marginal revenue is the extra revenue earned by producing and selling one extra unit of output.

Detailed explanation-3: -Marginal revenue is the net revenue a business earns by selling an additional unit of its product, while average revenue refers to revenue earned per output unit. Thus, marginal revenue is the change in revenue divide by the change in quantity, while average revenue is total revenue divided by the number of units sold.

Detailed explanation-4: -9) What does the term “marginal” mean in economics? D) a and b. involves undertaking an activity until its marginal benefits equal marginal costs. The revenue received from the sale of an additional unit of a product 11) A) is called gross sales.

Detailed explanation-5: -Marginal revenue is the rate of total revenue. The slope of total revenue is determined by the marginal revenue. That is why when MR is constant, Tr increases at a constant rate and when MR starts decreasing then the total revenue increases at a decreasing rate and when MR becomes negative then the TR starts falling.