Class 11 Economics Important Chapter 8 Concepts of Revenue

Class 11 Economics Important Chapter 8 Concepts of Revenue Solutions English Medium As Per AHSEC New Syllabus to each chapter is provided in the list so that you can easily browse through different chapters ASSEB Class 11 Economics Important Solutions and select need one. AHSEC Class 11 Economics Additional Notes English Medium Download PDF. HS 1st Year Economics Important Solutions in English.

Class 11 Economics Important Chapter 8 Concepts of Revenue

Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. Assam AHSEC Board Class 11 Economics Additional Question Answer are part of All Subject Solutions. Here we have given HS 1st Year Economics Important Notes in English for All Chapters, You can practice these here.

Concepts of Revenue

Chapter: 8

PART – A : MICROECONOMICS

IMPORTANT QUESTION AND ANSWER

Short Type Question and Answer:

1. What is the formula for calculating total revenue?

Ans: TR=P×QTR = P \times QTR=P×Q (Price × Quantity sold).

2. How is average revenue calculated from total revenue?

Ans: AR=TRQAR = \frac{TR}{Q}AR=QTR​.

3. What is the relation between AR and price in a perfectly competitive market?

Ans: AR is equal to price.

4. In perfect competition, how are AR and MR related?

Ans: AR = MR = Price.

5. When price is constant, what is the shape of the AR curve?

Ans: A horizontal straight line parallel to the X-axis.

6. What happens to MR when AR falls with output?

Ans: MR falls more sharply than AR.

7. When MR is negative, what happens to TR?

Ans: TR falls.

8. In the case of a downward-sloping straight-line demand curve, what is the shape of the TR curve?

Ans: An inverted vertical parabola.

9. How does the MR curve lie in relation to the AR curve when AR is falling?

Ans: MR curve lies below the AR curve.

10. At what point on the demand curve is MR zero?

Ans: At the midpoint where elasticity of demand is equal to one.

11. If the price elasticity of demand is greater than one, what is the sign of MR?

 Ans: MR is positive.

12. If the price elasticity of demand is less than one, what is the sign of MR?

Ans: MR is negative.

13. In the case of straight-line AR and MR curves, how does MR fall compared to AR?

Ans: MR falls at twice the rate of AR.

14. What determines the shape of the AR curve?

Ans: Marginal revenue (MR).

15. What is the relationship between MR, AR, and price elasticity of demand?

Ans: MR=AR×(ep−1)epMR = AR \times \frac{(e_p – 1)}{e_p}MR=AR×ep​(ep​−1)​.