CLASS - XI (SESSION 2023-24)

SUBJECT: ECONOMICS (030) DATE: 5/12/2023

Chapter 7:- REVENUE
HANDOUT-1
MODE OF COLLABORATION: Collaborative and Explanatory
1.Concept of Revenue:-Revenue refers to the amount received by a firm from the sale of a
given quantity of a commodity in the market. It is directly influenced by sales level, that is as
sales increase, revenue also increases.
2. Total Revenue:- It refers to total receipts from the sale of a given quantity of a commodity. It
is the total income of a firm.
Total Revenue = Quantity * Price.
3.Average Revenue:- It refers to revenue per unit of output sold.
Average Revenue = Total Revenue/Quantity.
4. Marginal Revenue:- It is the additional revenue generated from the sale of an additional unit
of output.
MRn= TRn-TRn-1
QUESTIONS TO BE DISCUSSED IN CLASS
Q1.Calculate TR, AR and MR.
Units Sold 1 2 3 4
Price 5 4 3 2

Q2. Calculate TR and MR from the following data:-

Units 1 2 3 4 5 6
Sold
AR(Rs.) 25 23 21 19 18 15
Q3. Complete the following table:-

GURUKUL THE SCHOOL, GHAZIABAD

Units 1 2 3 4 5 6 7 8
Sold
TR(Rs.) 10 - 24 - 30 30 28 -
MR(Rs.) 10 - - 4 - 0 - 4
AR(Rs.) - 9 - 7 6 - 4 3
Q4.Complete the following table:-

Output(Units) Total Revenue Marginal Revenue Price

1 4 - -
2 6 - -
3 6 - -
4 4 - -

Q5. Complete the following table:-

Price (Rs.) Output (Units) Total Revenue Marginal Revenue

(Rs.) (Rs.)
- 1 - 5
4 - 8 -
- 3 - 1
2 - 8 -

HOMEWORK QUESTIONS
Q10, Q13,Q17,Q18,Q19 of book

GURUKUL THE SCHOOL, GHAZIABAD

GURUKUL THE SCHOOL, GHAZIABAD