15. Give reasons, state whether the following statements are true or false:
(a) When marginal revenue is zero, average revenue will be constant.
(b) When total revenue is maximum the marginal revenue is also maximum.
(a) False.
It's the total revenue which remains constant when MR is zero. AR goes on decreasing with every additional unit of output sold.
(b) False.
When TR reaches its maximum point, MR = 0.
It's the total revenue which remains constant when MR is zero. AR goes on decreasing with every additional unit of output sold.
(b) False.
When TR reaches its maximum point, MR = 0.