Exhibit 8-1 Quantity and total revenue data for a firm $$\begin{array} { | c | c | }
\hline \text { Quantity } & \text { Total Revenue } \
\hline 0 & \$ 0 \
1 & 62 \
2 & 124 \
3 & 186 \
\hline
\end{array}$$
-Exhibit 8-1 indicates that this firm is operating in which type of market structure?
A) Price-maker.
B) Unprofitable.
C) Perfect competition.
D) Nonhomogeneous.

Question

Exhibit 8-1 Quantity and total revenue data for a firm $$\begin{array} { | c | c | } 
\hline \text { Quantity } & \text { Total Revenue } \
\hline 0 & \$ 0 \
1 & 62 \
2 & 124 \
3 & 186 \
\hline
\end{array}$$
-Exhibit 8-1 indicates that this firm is operating in which type of market structure?
A) Price-maker.
B) Unprofitable.
C) Perfect competition.
D) Nonhomogeneous.

Quizplus · Accepted Answer

The firm is operating in a perfectly competitive market structure because the total revenue increases by a constant amount ($62) with each additional unit sold, indicating a constant price, which is characteristic of perfect competition.

Exhibit 8-1 Quantity and Total Revenue Data for a Firm