Which of the following statements are correct? 1. .When marginal revenue is positive, total revenue increases with increase in output. 2. When marginal revenue is zero, total revenue is maximum. 3. When marginal revenue becomes negative, total revenue falls with increase in output , Select the correct answer using the code given below:

The relationship between Total Revenue (TR) and Marginal Revenue (MR) is a fundamental concept in microeconomics. Marginal revenue represents the change in total revenue resulting from a one-unit increase in output [4]. When MR is positive, each additional unit sold adds to the total, causing the TR curve to rise as output increases [3]. When MR is zero, the TR curve reaches its peak or maximum point, indicating that no further revenue can be gained from additional sales. If MR becomes negative, it implies that selling an extra unit actually reduces the total revenue, causing the TR curve to decline [4]. These three conditions accurately describe the mathematical relationship between a total function and its marginal counterpart, where the marginal value is the slope of the total value curve [1]. Therefore, all three statements provided in the question are correct.

Sources

1. [4] Microeconomics (NCERT class XII 2025 ed.) > Chapter 5: Market Equilibrium > Chapter 5 > p. 90
2. [1] Microeconomics (NCERT class XII 2025 ed.) > Chapter 4: The Theory of the Firm under Perfect Competition > 4.2 REVENUE > p. 55
3. [3] Microeconomics (NCERT class XII 2025 ed.) > Chapter 4: The Theory of the Firm under Perfect Competition > 4.3.1 Condition 1 > p. 56