In a perfectly competitive market, the price of a packet of biscuits is Rs 12. A seller’s total revenue rises from Rs 36 to Rs 60. Its sales have risen from:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 3 packets to 5 packets
Given:
Price = Rs 12
TR rises from Rs 36 to Rs 60
Total revenue = price × quantity sold. So quantity = TR ÷ price.
Old sales = 36 ÷ 12 = 3 packets
New sales = 60 ÷ 12 = 5 packets
NCERT (2026-27): “4.2 Revenue … A firm earns revenue by selling the good that it produces in the market. Let the market price of a unit of the good be p. Let q be the quantity of the good produced, and therefore sold, by the firm at price p. Then, total revenue (TR) of the firm is defined as the market price of the good (p) multiplied by the firm’s output (q).” |