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Revenue Schedules And Curves - SS2 Economics Past Questions and Answers - page 1

1

What does the total revenue curve show?

A

How a firm's total cost changes as it changes the quantity of output it produces

B

How a firm's total revenue changes as it changes the quantity of output it produces 

 

C

How a firm's average revenue changes as it changes the quantity of output it produces

D

None of the above

correct option: b

(It shows how a firm's total revenue changes as it changes the quantity of output it produces)

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2

What does the average revenue curve show?

A

How a firm's total revenue changes as it changes the quantity of output it produces

B

How a firm's average revenue changes as it changes the quantity of output it produces 

 

C

How a firm's marginal revenue changes as it changes the quantity of output it produces

D

None of the above

correct option: b

(It shows how a firm's average revenue changes as it changes the quantity of output it produces)

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3

What does the marginal revenue curve show?

A

How a firm's total revenue changes as it changes the quantity of output it produces

B

How a firm's average revenue changes as it changes the quantity of output it produces

 

C

How a firm's marginal revenue changes as it changes the quantity of output it produces 

D

None of the above

correct option: c

(It shows how a firm's marginal revenue changes as it changes the quantity of output it produces)

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4

What is the slope of the total revenue curve?

A

Upward-sloping initially, then flat 

B

Downward-sloping initially, then flat

C

Downward-sloping throughout

D

Upward-sloping throughout

correct option: a
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5

What is the average revenue curve?

The average revenue curve shows how a firm's average revenue changes as it changes the quantity of output it produces. The AR curve is always equal to the price of the goods being sold.

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6

What is the marginal revenue curve?

 

The marginal revenue curve shows how a firm's marginal revenue changes as it changes the quantity of output it produces. The MR curve slopes downward as output increases.

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