1.

Explain the relationship between marginal revenue and total revenue

Answer»

Relationship between Marginal Revenue and Total Revenue is as follows: 

(i) TR increases at increasing rate, if MR is increasing.

(ii) TR increases at diminishing rate, if MR is diminishing. 

(iii) TR is constant and maximum, if MR is zero. 

(iv) TR decreases, when MR becomes negative. 



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