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What happens to total revenue when the marginal revenue is positive?

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प्रश्न

What happens to total revenue when the marginal revenue is positive?

लघु उत्तरीय
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उत्तर

When marginal revenue (MR) is positive, total revenue (TR) increases as output increases. This means that for each additional unit sold, the firm is still earning extra income, so the total earnings from sales continue to rise. 

This happens in the initial stage of output when the marginal revenue is above zero.

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अध्याय 8: Cost and Revenue Analysis - TEST YOURSELF QUESTIONS [पृष्ठ १७३]

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फ्रैंक Economics [English] Class 12 ISC
अध्याय 8 Cost and Revenue Analysis
TEST YOURSELF QUESTIONS | Q 54. (i) | पृष्ठ १७३
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