Asked by
Olivia Mesmer
on Oct 27, 2024
Verified
If a perfectly competitive firm decreases production from 11 units to 10 units and the market price is $20 per unit,total revenue for 10 units is:
A) -$20.
B) $20.
C) $200.
D) $210.
Perfectly Competitive
A market structure where many firms sell identical products, entry and exit are easy, and no single buyer or seller has market power.
Total Revenue
The total income generated from the sale of goods or services, calculated by multiplying the price per unit by the number of units sold.
Market Price
The present cost at which one can buy or sell an item or service in a competitive market environment.
- Understand the connection between marginal revenue, marginal cost, and the maximization of profits in a perfectly competitive market.
Verified Answer
MM
Learning Objectives
- Understand the connection between marginal revenue, marginal cost, and the maximization of profits in a perfectly competitive market.