Consider the price and quantity data below for a perfectly competitive firm producing mousetraps. $$\begin{array}{l}
\begin{array} { | l | l | }
\hline \text { Price } ( \$ ) & \text { Quantity } \
\hline 5 & 1000 \
\hline 5 & 1250 \
\hline 5 & 1500 \
\hline 5 & 1750 \
\hline 5 & 2000 \
\hline
\end{array}\
\text { TABLE 9- } 1
\end{array}$$
-Refer to Table 9- 1. Suppose this firm is currently selling 1750 mousetraps at the market price of $5. If the firm raises its price to $6, its total revenue will be

Question

Consider the price and quantity data below for a perfectly competitive firm producing mousetraps. $$\begin{array}{l}
\begin{array} { | l | l | } 
\hline \text { Price } ( \$ ) & \text { Quantity } \
\hline 5 & 1000 \
\hline 5 & 1250 \
\hline 5 & 1500 \
\hline 5 & 1750 \
\hline 5 & 2000 \
\hline
\end{array}\
\text { TABLE 9- } 1
\end{array}$$
-Refer to Table 9- 1. Suppose this firm is currently selling 1750 mousetraps at the market price of $5. If the firm raises its price to $6, its total revenue will be

Quizplus · Accepted Answer

In a perfectly competitive market, firms are price takers, meaning they cannot sell any units above the market price. If the firm raises its price to $6, it will sell zero units, resulting in total revenue of $0.

Consider the Price and Quantity Data Below for a Perfectly