Revenue Concepts
Economics ⇒ Consumer and Producer Behaviour
Revenue Concepts starts at 11 and continues till grade 12.
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See sample questions for grade 11
Define total revenue.
Describe the relationship between total revenue, average revenue, and marginal revenue.
Describe the shape of the total revenue curve under perfect competition.
Explain the relationship between price elasticity of demand and total revenue.
Explain the relationship between total revenue and marginal revenue.
Explain why marginal revenue is less than average revenue under monopoly.
Explain why the average revenue curve is also called the demand curve for a firm.
If a firm’s marginal revenue is negative, what is happening to its total revenue?
If the price elasticity of demand is greater than 1, what happens to total revenue when price falls? (1) Increases, (2) Decreases, (3) Remains unchanged, (4) Becomes zero
Which of the following is correct about average revenue? (1) It is always constant, (2) It is total revenue divided by quantity, (3) It is the same as marginal revenue in all markets, (4) It is always less than marginal revenue
Which of the following is not a revenue concept? (1) Total revenue, (2) Marginal revenue, (3) Average cost, (4) Average revenue
Which of the following is not true about marginal revenue? (1) It can be negative, (2) It is always equal to average revenue, (3) It is the change in total revenue, (4) It can be zero
Fill in the blank: In a monopoly, the average revenue curve is also the _______ curve.
Fill in the blank: The marginal revenue curve cuts the x-axis where total revenue is at its _______.
Fill in the blank: Under perfect competition, the marginal revenue curve is _______ to the average revenue curve.
Fill in the blank: When marginal revenue is zero, total revenue is at its _______.
State whether the following is true or false: In monopoly, the average revenue curve is downward sloping.
State whether the following is true or false: Marginal revenue can be zero.
State whether the following statement is true or false: In perfect competition, marginal revenue equals average revenue.
True or False: In monopoly, marginal revenue is always less than price except for the first unit sold.
