Suppose that a firm is collecting $100 in total revenue when it sells 10 units and $110 in total revenue when it sells 11 units.The firm is a(n)
A) pure monopolist.
B) oligopolist.
C) monopolistic competitor.
D) monopsonist.
E) perfect competitor.

Question

Quizplus · Accepted Answer

The firm is a perfect competitor because the marginal revenue from selling an additional unit is constant ($10), which is characteristic of firms in perfectly competitive markets where price equals marginal revenue.

Suppose That a Firm Is Collecting $100 in Total Revenue