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State the relations between MR and …

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State the relations between MR and TR with a daigram when the price falls

Posted by Rajneesh Jyani 6 years, 10 months ago

CBSE > Class 12 > Economics

2 answers

Ashwani Karsh 6 years, 10 months ago

It's are rilated short run and variable factor increase and keep other factors constant and total factor increasing rate and decrising than nagative slops MR = TR

Rajip Chowdhury 6 years, 10 months ago

When price falls it is the case of imperfect competition were the producer reduces the price to increase it's revenue by increasing it's sale. With the fall in price TR increases at a decreaseing rate and marginal revenue keeps on failing. When TR reached at its maximum point then MR becomes zero. If the producer increases it's sale any longer tr falls and marginal revenue becomes negative.

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