Question

Identify the correctly matched statements from Column I to that of Column II:

Column I	Column II
1. Total revenue	(a) Sum of marginal revenues
2. MC > ATC	(b) Stage III
3. MP is negative.	(c) Qx = f(L, K)
4. Production Function	(d) ATC must rise.

विकल्प

• 1 - a

• 2 - b

• 3 - c

• 4 - d

Answer 1

1 - a

Explanation:

Total revenue is equal to the sum of marginal revenue, i.e. TR = ∑MR.

To put it another way, MR is calculated like this:

MR = TRn - TRn - 1