1.

Explain the relation between marginal revenue and average revenue when a firm is able to sell more quantity of output : (i) at the same price. (ii) only by lowering the price. OR Explain the effect of the following on the supply of a commodity : (a) Fall in the prices of factor inputs. (b) Rise in the prices of other commodities.

Answer»

Explain the relation between marginal revenue and average revenue when a firm is able to sell more quantity of output :

(i) at the same price.

(ii) only by lowering the price.

OR

Explain the effect of the following on the supply of a commodity :

(a) Fall in the prices of factor inputs.

(b) Rise in the prices of other commodities.



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