2014 · Q97
Which of the following statements are correct?
- 1When marginal revenue is positive, total revenue increases with increase in output.
- 2When marginal revenue is zero, total revenue is maximum.
- 3When marginal revenue becomes negative, total revenue falls with increase in output.
Select the correct answer using the code given below:
General KnowledgeIndian Economy
- A1 and 2 only
- B2 and 3 only
- C1 and 3 only
- D1, 2 and 3
Explanation
Total revenue rises while marginal revenue is positive, peaks when it is zero, and falls when it is negative.