If a firm collects $100 in revenue when it sells five units and $114 when it sells six units,one can infer the firm is
A) a perfect competitor.
B) probably a perfect competitor.
C) either a perfect competitor or a monopolist.
D) a monopolist.
E) of an unknown structure;there is insufficient information available.

Question

Quizplus · Accepted Answer

The increase in revenue from selling an additional unit is $14, which is greater than the price per unit when selling five units ($20). This suggests the firm has some control over its pricing, indicating it is likely a monopolist rather than a perfect competitor, where the price would remain constant.

If a Firm Collects $100 in Revenue When It Sells