Online Test — Revenue
15 Questions • 15 min • Chapter MCQ
15:00
Question 1 of 15
The money a firm receives from selling its output is its:
Cost
Revenue
Profit
Utility
Explanation: Revenue is the money received from sales.
Question 2 of 15
Total revenue equals:
Price × Quantity
Price ÷ Quantity
Price + Quantity
TR ÷ Q
Explanation: TR = P × Q.
Question 3 of 15
Average revenue is:
TR ÷ Q
TR × Q
Change in TR
Price + Q
Explanation: AR = TR ÷ Q.
Question 4 of 15
Average revenue is always equal to the:
Marginal cost
Price
Total cost
Fixed cost
Explanation: AR = TR ÷ Q = P, so AR equals the price.
Question 5 of 15
The AR curve of a firm is the same as its:
Cost curve
Demand curve
Supply curve
MC curve
Explanation: Since AR = price, the AR curve is the demand curve.
Question 6 of 15
Marginal revenue is the:
TR ÷ Q
Change in TR from one more unit
Price × Q
Total revenue
Explanation: MR = change in total revenue from selling one more unit.
Question 7 of 15
A firm sells 10 units at ₹5 each. Its total revenue is:
₹50
₹15
₹2
₹5
Explanation: TR = 5 × 10 = ₹50.
Question 8 of 15
When price is constant, AR and MR are:
Equal
Unequal
Falling
Negative
Explanation: With constant price, AR = MR = price.
Question 9 of 15
When a firm must lower its price to sell more, the AR curve:
Is horizontal
Slopes downward
Is vertical
Slopes upward
Explanation: Lowering price to sell more gives a downward-sloping AR curve.
Question 10 of 15
When price falls to sell more, the MR curve lies:
Above AR
Below AR
On AR
Horizontally
Explanation: MR lies below the downward AR curve under imperfect competition.
Question 11 of 15
Total revenue is maximum when marginal revenue is:
Maximum
Zero
Negative
Equal to price
Explanation: TR is maximum at the output where MR = 0.
Question 12 of 15
When MR is positive, total revenue is:
Rising
Falling
Constant
Zero
Explanation: Positive MR means TR is still rising.
Question 13 of 15
A firm that cannot influence the market price is a:
Price maker
Price taker
Monopolist
Leader
Explanation: Under perfect competition the firm is a price taker.
Question 14 of 15
Under perfect competition, the AR = MR curve is:
A horizontal straight line
Downward sloping
U-shaped
Vertical
Explanation: Constant price gives a horizontal AR = MR line.
Question 15 of 15
If TR rises from ₹96 to ₹105 when one more unit is sold, MR is:
₹9
₹105
₹96
₹201
Explanation: MR = 105 − 96 = ₹9.