If a firm's total revenue is $112 when it sells 16 units, $119 when it sells 17 units and $126 when it sells 18 units, then the firm is:
A)only an imperfectly competitive firm if it sets MR=MC.
B)either a perfectly or imperfectly competitive firm.
C)an imperfectly competitive firm.
D)a perfectly competitive firm.

Question

Quizplus · Accepted Answer

In this example, marginal revenue is constant and equal to price ($7), suggesting that this is a perfectly competitive firm.

If a Firm's Total Revenue Is $112 When It Sells