# NCERT Solutions for Class 12 Micro Economics Revenue

## NCERT Solutions for Class 12 Micro Economics Revenue

NCERT Solutions for Class 12 Micro Economics Revenue is designed and prepared by the best teachers across India. All the important topics are covered in the exercises and each answer comes with a detailed explanation to help students understand concepts better. These NCERT solutions play a crucial role in your preparation for all exams conducted by the CBSE, including the JEE.

### NCERT TEXTBOOK QUESTIONS SOLVED

1. Give the meaning of revenue. Or [CBSE 2007] Define revenue. [CBSE 2008]

Ans. Revenue of a firm refers to receipts from the sale of output in a given period.

2. Define total revenue.[CBSE, All India 2004]

Ans. The amount received from the sale of given amount of output is known as Total Revenue. For example, if a firm sells 100 chairs at a price of ? 200 per chair, The total revenue will be 100 Chairs x Rs. 200 = Rs 20,000.

3. Define average revenue.[CBSE, Foreign 2004]

Ans. The per unit amount received from the sale of given amount of output.

4. Define marginal revenue.

Ans. The amount received from the sale of additional unit of output is known as Marginal Revenue.

5. How is MR derived from TR?

Ans. Supply curve is a positively shaped upward sloping curve.

6. What change in TR will result in a decrease in MR?

Ans. When TR increases at a diminishing rate.

7. When TR falls, what happens to MR?

Ans. MR is negative.

8. How does TR change with the output when MR is zero?

Ans. Then, TR is maximum and constant.

9. What is the behaviour of average revenue in a market in which a firm can sell more only by lowering the price? [CBSE 2012]

Ans. Average revenue will fall

10. What is the behaviour of Marginal Revenue in a market in which a firm can sell any quantity of the output it produces at a given price? [AI 2012]

Ans. Marginal revenue remains constant.

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