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

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Question

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

Short Answer
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Solution

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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Chapter 8: Cost and Revenue Analysis - TEST YOURSELF QUESTIONS [Page 161]

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Frank Economics [English] Class 12 ISC
Chapter 8 Cost and Revenue Analysis
TEST YOURSELF QUESTIONS | Q 51. (i) | Page 161
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