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What happens to total revenue when the marginal revenue is zero? - Economics

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प्रश्न

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

लघु उत्तरीय
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उत्तर

When marginal revenue (MR) is zero, it means that total revenue (TR) is at its maximum. At this point, selling one more unit does not add anything to total revenue. 

In other words, the firm is earning the highest possible total revenue, and any further increase in output would start to decrease total revenue (because MR would become negative).

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अध्याय 8: Cost and Revenue Analysis - TEST YOURSELF QUESTIONS [पृष्ठ १६१]

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फ्रैंक Economics [English] Class 12 ISC
अध्याय 8 Cost and Revenue Analysis
TEST YOURSELF QUESTIONS | Q 51. (ii) | पृष्ठ १६१
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