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Chapter 12

Ravenues and Ravenue Curves

1. When total revenue is maximum, then

āϝেāϤিāϝ়া āĻŽুāĻ  ā§°াāϜāĻš āϏ⧰্āĻŦাāϧিāĻ• āĻšāϝ়, āϤেāϤিāϝ়া

(a) MR equals zero

āĻāĻŽāφ⧰ āĻļূāύ্āϝ⧰ āϏāĻŽাāύ

(b) AR equals zero

āĻāφ⧰ āĻļূāύ্āϝ⧰ āϏāĻŽাāύ

(c) None of the above

āĻ“āĻĒā§°ā§° āĻ•োāύোāϟো āύāĻšāϝ়

Answer: (a) MR equals zero (āĻāĻŽāφ⧰ āĻļূāύ্āϝ⧰ āϏāĻŽাāύ)।

2. When AR falls, the MR

āϝেāϤিāϝ়া āĻ.āφ⧰. āĻĒā§°ে, āĻāĻŽ.āφ⧰.

(a) Rises

āωāϤ্āĻĨাāύ

(b) Falls

āϜāϞāĻĒ্ā§°āĻĒাāϤ

(c) Remains unchanged

āĻ…āĻĒā§°িā§ąā§°্āϤিāϤ āĻšৈ āφāĻ›ে

Answer: (b) Falls (āϜāϞāĻĒ্ā§°āĻĒাāϤ)।

3. When AR rises, the MR

āϝেāϤিāϝ়া āĻ.āφ⧰. āĻ“āĻĒā§°āϞৈ āωāĻ ে, āĻāĻŽ.āφ⧰.

(a) Rises

āωāϤ্āĻĨাāύ

(b) Falls

āϜāϞāĻĒ্ā§°āĻĒাāϤ

(c) Remains unchanged

āĻ…āĻĒā§°িā§ąā§°্āϤিāϤ āĻšৈ āφāĻ›ে

Answer: (a) Rises (āωāϤ্āĻĨাāύ)।

4. When AR remains constant, the MR

āϝেāϤিāϝ়া āĻ.āφ⧰. āϏ্āĻĨিā§° āĻĨাāĻ•ে, āĻāĻŽ.āφ⧰.

(a) Rises

āωāϤ্āĻĨাāύ

(b) Falls

āϜāϞāĻĒ্ā§°āĻĒাāϤ

(c) Remains constant

āϏ্āĻĨিā§° āĻšৈ āĻĨাāĻ•ে

Answer: (c) Remains constant (āϏ্āĻĨিā§° āĻšৈ āĻĨাāĻ•ে)।

5. If Ep=1.8 and MR = Rs. 16, then AR is

āϝāĻĻি āχāĻĒি=1.8 āφ⧰ু āĻāĻŽ.āφ⧰. = 16 āϟāĻ•া, āϤেāύেāĻš'āϞে āĻ.āφ⧰. āĻšৈāĻ›ে

(a) Rs. 40

40 āϟāĻ•া

(b) Rs. 36

ā§Šā§Ŧ āϟāĻ•া

(c) Rs. 32

32 āϟāĻ•া

Answer: (b) Rs. 36 (ā§Šā§Ŧ āϟāĻ•া)।

6. If Ep=1, AR = Rs. 10, then MR is

āϝāĻĻি āχāĻĒি=1, āĻāφ⧰ = 10 āϟāĻ•া, āϤেāύ্āϤে āĻāĻŽāφ⧰ āĻšৈāĻ›ে

(a) Zero

āĻļূāύ্āϝ

(b) 1 Re

1 āĻĒুāύ⧰

(c) Rs. 2.

2 āϟāĻ•া।

Answer: (a) Zero (āĻļূāύ্āϝ)।

7. AR and MR curves under perfect competition are

āύিāĻ–ুঁāϤ āĻĒ্ā§°āϤিāϝোāĻ—িāϤাā§° āĻ…āϧীāύāϤ āĻāφ⧰ āφ⧰ু āĻāĻŽāφ⧰ āĻ•াā§°্āĻ­āĻŦোā§° āĻšৈāĻ›ে

(a) Parallel to X-axis

āĻāĻ•্āϏ-āĻ…āĻ•্āώ⧰ āϏāĻŽাāύ্āϤ⧰াāϞ

(b) Parallel to Y-axis

ā§ąাāχ-āĻ…āĻ•্āώ⧰ āϏāĻŽাāύ্āϤ⧰াāϞ

(c) Upward sloping

āĻ“āĻĒā§°āϞৈ āĻšেāϞāύীāϝ়া

(d) Downward sloping

āϤāϞāϞৈ āĻšেāϞāύীāϝ়া

Answer: (a) Parallel to X-axis (āĻāĻ•্āϏ-āĻ…āĻ•্āώ⧰ āϏāĻŽাāύ্āϤ⧰াāϞ)।

8. Profits for a firm are maximum when

āĻĢাā§°্āĻŽ āĻāϟাā§° āϞাāĻ­ āϏ⧰্āĻŦাāϧিāĻ• āĻšāϝ় āϝেāϤিāϝ়া

(a) MR > MC

āĻāĻŽāφ⧰ > āĻāĻŽāϚি

(b) MR<MC

āĻāĻŽ.āφ⧰.<āĻāĻŽ.āϚি.

(c) MR = MC

āĻāĻŽāφ⧰ = āĻāĻŽāϚি

(d) MR MC=0 

āĻāĻŽāφ⧰ āĻāĻŽāϚি=0 

Answer: (c) MR = MC (āĻāĻŽāφ⧰ = āĻāĻŽāϚি)।

9. The break-even point occurs when
āĻŦ্ā§°েāĻ•-āχāĻ­েāύ āĻĒāχāĻŖ্āϟ āϟো āϤেāϤিāϝ়া āĻšāϝ় āϝেāϤিāϝ়া

(a) TR<TC

(āĻ•) āϟিāφ⧰<āϟিāϚি

(b) TR=TC

(āĻ–) āϟিāφ⧰=āϟিāϚি

(c) TR>TC

(āĻ—) āϟিāφ⧰>āϟিāϚি

Answer: (b) TR=TC ((āĻ–) āϟিāφ⧰=āϟিāϚি)।

Very Short Answer Type Questions

1. Define total revenue (TR).

āĻŽুāĻ  ā§°াāϜāĻš (āϟিāφ⧰) āύিā§°্āϧাā§°āĻŖ āϕ⧰া।

Answer:

2. What is average revenue (AR) ?

āĻ—āĻĄ় ā§°াāϜāĻš (āĻāφ⧰) āĻ•িāĻŽাāύ?

Answer:

3. What is the meaning of marginal revenue (MR) ?

āĻĒ্ā§°াāύ্āϤিāĻ• ā§°াāϜāĻšā§° (āĻāĻŽ.āφ⧰.) āĻ…ā§°্āĻĨ āĻ•ি?

Answer:

4. Give the formula for relating AR, MR and price elasticity of demand.

āĻ.āφ⧰., āĻāĻŽ.āφ⧰. āφ⧰ু āϚাāĻšিāĻĻাā§° āĻŽূāϞ্āϝ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻ•āϤা āϏāĻŽ্āĻĒā§°্āĻ•িāϤ āϕ⧰াā§° āϏূāϤ্ā§° āĻĻিāϝ়া।

Answer:

5. Give the meaning of the break-even point of a firm.

āĻĢাā§°্āĻŽ āĻāϟাā§° āĻŦ্ā§°েāĻ•-āχāĻ­েāύ āĻĒāχāĻŖ্āϟ⧰ āĻ…ā§°্āĻĨ āĻĻিāϝ়া।

Answer:

6. What is the shape of revenue curves under monopoly?

āĻāĻ•āϚেāϟিāϝ়া āφāϧিāĻĒāϤ্āϝ⧰ āĻ…āϧীāύāϤ ā§°াāϜāĻš āĻŦāĻ•্ā§°ā§° āφāĻ•ৃāϤি āĻ•ি?

Answer:

Short Answer Type Questions

1. Give the meaning of TR, AR and MR.

āϟি.āφ⧰., āĻ.āφ⧰. āφ⧰ু āĻāĻŽ.āφ⧰.-ā§° āĻ…ā§°্āĻĨ āĻĻিāϝ়া।

Answer:

2. If AR curve is a falling straight line, what is the shape of MR curve ?

āϝāĻĻি āĻ.āφ⧰. āĻŦāĻ•্ā§° āĻāϟা āϏ⧰āϞ ā§°েāĻ–া āĻšāϝ়, āĻāĻŽ.āφ⧰. āĻŦāĻ•্ā§°ā§° āφāĻ•ৃāϤি āĻ•ি?

Answer:

3. Express the relationship between AR, MR and elasticity of demand. 

āĻ.āφ⧰., āĻāĻŽ.āφ⧰. āφ⧰ু āϚাāĻšিāĻĻাā§° āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻ•āϤাā§° āĻŽাāϜ⧰ āϏāĻŽ্āĻĒā§°্āĻ• āĻĒ্ā§°āĻ•াāĻļ āϕ⧰া। 

Answer:

4. What is the shape of revenue curves under monopolistic competition ?

āĻāĻ•āϚেāϟিāϝ়া āĻĒ্ā§°āϤিāϝোāĻ—িāϤাā§° āĻ…āϧীāύāϤ ā§°াāϜāĻš āĻŦāĻ•্ā§°ā§° āφāĻ•ৃāϤি āĻ•ি?

Answer:

5. What are the conditions for firm's equilibrium with maximum profits under perfect competition ?

āύিāĻ–ুঁāϤ āĻĒ্ā§°āϤিāϝোāĻ—িāϤাā§° āĻ…āϧীāύāϤ āϏ⧰্āĻŦাāϧিāĻ• āϞাāĻ­ā§° āϏৈāϤে āĻĢাā§°্āĻŽā§° āϏāύ্āϤুāϞāύ⧰ āϚ⧰্āϤāĻŦোā§° āĻ•ি?

Answer:

Long Answer Type Questions

1. Explain the concepts of TR, AR and MR.

āϟি.āφ⧰., āĻ.āφ⧰. āφ⧰ু āĻāĻŽ.āφ⧰.-ā§° āϧাā§°āĻŖাāĻŦোā§° āĻŦā§°্āĻŖāύা āϕ⧰া।

Answer:

2. Discuss the relationship between AR and MR.

āĻ.āφ⧰. āφ⧰ু āĻāĻŽ.āφ⧰.-ā§° āĻŽাāϜ⧰ āϏāĻŽ্āĻĒā§°্āĻ• āφāϞোāϚāύা āϕ⧰া।

Answer:

3. Establish the relationship between AR and MR through price elasticity of demand.

 āϚাāĻšিāĻĻাā§° āĻŽূāϞ্āϝ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻ•āϤাā§° āϜ⧰িāϝ়āϤে āĻāφ⧰ āφ⧰ু āĻāĻŽāφ⧰⧰ āĻŽাāϜ⧰ āϏāĻŽ্āĻĒā§°্āĻ• āϏ্āĻĨাāĻĒāύ āϕ⧰া।

Answer:

4. Determine MR, if 

āĻāĻŽāφ⧰ āύিā§°্āϧাā§°āĻŖ āϕ⧰āĻ•, āϝāĻĻি 

(i) Price = Rs. 24 and Ep = 1.2 

āĻŽূāϞ্āϝ = 24 āϟāĻ•া āφ⧰ু āχāĻĒি = 1.2 

(ii) Price = Rs. 16 and Ep = 1

āĻŽূāϞ্āϝ = 16 āϟāĻ•া āφ⧰ু āχāĻĒি = 1

(iii) Price = Rs. 30 and Ep = 0.6

āĻŽূāϞ্āϝ = 30 āϟāĻ•া āφ⧰ু āχāĻĒি = 0.6

Answer:

5. Does a firm maxinise its total revenue when it maximises its total profit ? Explain briefly.

āĻāϟা āĻĒ্ā§°āϤিāώ্āĻ াāύে āχāϝ়াā§° āĻŽুāĻ  ā§°াāϜāĻš āϏ⧰্āĻŦাāϧিāĻ• āϕ⧰িāϞে āχāϝ়াā§° āĻŽুāĻ  ā§°াāϜāĻš āϏ⧰্āĻŦাāϧিāĻ• āϕ⧰ে āύেāĻ•ি? āϚāĻŽুāĻ•ৈ āĻŦā§°্āĻŖāύা āϕ⧰া।

Answer:

Very Long Answer Type Questions

1. Explain clearly the different concepts related to revenues. 

ā§°াāϜāĻš āϏāĻŽ্āĻĒā§°্āĻ•ীāϝ় āĻŦিāĻ­িāύ্āύ āϧাā§°āĻŖাāϏ্āĻĒāώ্āϟāĻ­াā§ąে āĻŦā§°্āĻŖāύা āϕ⧰া। 

Answer:

2. How can you derive AR and MR curves from the TR curve ?

āφāĻĒুāύি āϟিāφ⧰ āĻŦāĻ•্ā§°ā§° āĻĒā§°া āĻāφ⧰ āφ⧰ু āĻāĻŽāφ⧰ āĻŦāĻ•্ā§°āĻŦোā§° āĻ•েāύেāĻĻā§°ে āφāĻšā§°āĻŖ āϕ⧰িāĻŦ āĻĒাā§°ে?

Answer:

3. Explain clearly the relationship between AR and MR.

āĻ.āφ⧰. āφ⧰ু āĻāĻŽ.āφ⧰.-ā§° āĻŽাāϜ⧰ āϏāĻŽ্āĻĒā§°্āĻ• āϏ্āĻĒāώ্āϟāĻ­াā§ąে āĻŦā§°্āĻŖāύা āϕ⧰া।

Answer:

4. Explain clearly the relationship between AR, MR and price elasticity of demand. 

āĻ.āφ⧰., āĻāĻŽ.āφ⧰. āφ⧰ু āϚাāĻšিāĻĻাā§° āĻŽূāϞ্āϝ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻ•āϤাā§° āĻŽাāϜ⧰ āϏāĻŽ্āĻĒā§°্āĻ• āϏ্āĻĒāώ্āϟāĻ­াā§ąে āĻŦā§°্āĻŖāύা āϕ⧰া। 

Answer:

5. Explain the shape of AR and MR curves under different market situations.

āĻŦিāĻ­িāύ্āύ āĻŦāϜাā§°āĻĒā§°িāϏ্āĻĨিāϤিā§° āĻ…āϧীāύāϤ āĻ.āφ⧰. āφ⧰ু āĻāĻŽ.āφ⧰. āĻŦāĻ•্ā§°ā§° āφāĻ•ৃāϤি āĻŦā§°্āĻŖāύা āϕ⧰া।

Answer:

6. Discuss producer's equilibrium with the help of total revenue-total cost approach. Using MR and MC approach, find out the level of output at which producer is in equilibrium with the help of the following data. Give reasons for your answer :

āĻŽুāĻ  ā§°াāϜāĻš-āĻŽুāĻ  āĻŦ্āϝāϝ় āĻĒāĻĻ্āϧāϤিā§° āϏāĻšাāϝ়āϤ āĻ‰ā§ŽāĻĒাāĻĻāϕ⧰ āϏāύ্āϤুāϞāύ āφāϞোāϚāύা āϕ⧰া। āĻāĻŽ.āφ⧰. āφ⧰ু āĻāĻŽ.āϚি. āĻĒāĻĻ্āϧāϤি āĻŦ্āĻ¯ā§ąāĻšাā§° āϕ⧰ি, āύিāĻŽ্āύāϞিāĻ–িāϤ āĻĄাāϟাā§° āϏāĻšাāϝ়āϤ āĻ‰ā§ŽāĻĒাāĻĻāĻ• āĻ•োāύāϟো āϏāύ্āϤুāϞāύāϤ āφāĻ›ে āϏেāχ āφāωāϟāĻĒুāϟ⧰ āϏ্āϤ⧰ āϟো āĻŦিāϚাā§°ি āωāϞিāϝ়াāĻ“āĻ•। āφāĻĒোāύাā§° āωāϤ্āϤ⧰⧰ āĻ•াā§°āĻŖ āĻĻিāϝ়āĻ•:

Answer: