please explain how to solve:
A perfectly competitive firm sells 200 units of output at a price of $5 each. Instructions: Enter your answers as a whole number.
a. What is the firm's total revenue? $
b. What is the firm's marginal revenue? $
c. What is the firm's average revenue? $
As we know, in perfect competition, there are large number of firms selling the same product and no single firm has a control over the price, therefore, the price, average revenue, and marginal revenue are same in the perfect competition.
A. The firm's total revenue is equal to the product of the price and the quantity sold and, in this case,total revenue will be equal to the 5×200 which is equal to $1000.
B. The firm's marginal revenue is $5 as, in perfect competition, price is equal to the marginal revenue.
C. The firm's average revenue is $5 as, in perfect competition, price is equal to marginal revenue and average revenue.
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