Compute the total revenue, marginal revenue and average revenue schedules in following table. Market price of each unit of goods is Rs 10.

Quantity sold	0	1	2	3	4	5	6
TR(Rs)
AR(Rs)
MR(Rs)

3

(a)

Whatwouldbetheshapeofthe demand curve so that the total revenue curve is
(a) A positively sloped straight line passing through the origin?
(b) A horizontal line?

3

(a)

Comment on the shape of the MR curve in case the TR curve is a
(i) positively sloped straight line,
(ii) horizontal straight line.

3

(a)

Calculate TR and MR from the following data.

units sold	1	2	3	4	5	6
AR(Rs)	25	23	21	19	18	15

3

(a)

Complete the following table.

Price(Rs)	12	10	8	6
Output (units)	1	2	3	4
TR(Rs)	-	-	-	-
MR(Rs)	-	-	-	-

3

(a)

Complete the following table.

Price(Rs)	10	9	6	4
Output (units)	1	2	3	4
TR(Rs)	-	-	-	-
MR(Rs)	-	-	-	-

3

(a)

Complete the following table.

Units sold	1	2	3	4	5	6	7	8
TR(Rs)	20	-	48	-	60	60	56	-
MR(Rs)	20	-	-	8	-	0	-	-8
AR(Rs)	-	18	-	14	12	-	8	6

3

(a)

Complete the following table.

Output (units)	1	2	3	4
Price (Rs)	-	9	-	-
TR(Rs)	-	-	24	-
MR(Rs)	10	-	-	4

3

(a)

Calculate TR, AR and MR.

Units sold	6	7	8
Price(Rs)	5	4	3

3

(a)

A seller sells 3 diamond rings of Rs 15000 each. If a seller sells his 4th diamond ring, his MR becomes Rs 13500. Calculate the price at which the seller sells his fourth ring.

3

(a)

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.

3

(a)

Calculate TR, AR and MR from the following data.

Price(Rs)	1	2	3	4	5	6	7
units sold	100	90	80	70	60	50	40

3

(a)

Database of Maruti-Suzuki Co. got damaged in an accidental fire. The management attempted to imagine data. The following table emerged after brainstorming sessions between company executives and consultants. Is this data correct?

AR	TR
10	100
12	130
15	300
20	500

3

(a)

The demand function of a commodity x is Q_x = 12 - P_x (where Q_x = the quantity demanded of a commodity x and P_x = price of the commodity x). Derive the TR and MR schedules when the price of commodity varies from Rs 12 to Rs 1.

3

(a)

What is the relationship between TR and Price line when price is constant?

3

(a)