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When TR increases at constant rate, MR should be:
Increasing
Decreasing
Constant
Zero
- Total Revenue (TR) increases at a constant rate when a firm sells additional units at a consistent price.
- Marginal Revenue (MR) is the additional revenue earned by selling one more unit.
- Option 1: Increasing
- If MR is increasing, it would indicate that each additional unit sold yields more revenue than the previous one. This contradicts TR increasing at a constant rate.
- Option 2: Decreasing
- If MR decreases, each additional unit adds less revenue, which conflicts with constant rate of TR increase.
- Option 3: Constant
- If TR increases at a constant rate, selling each additional unit adds a fixed amount to the revenue, making MR constant.
- Option 4: Zero
- MR being zero suggests that selling additional units doesn't change TR, opposing the notion of increasing TR.
Option 3: Constant is the correct answer.
By: santosh ProfileResourcesReport error
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