Total revenue (TR) for an individual firm in a perfectly competitive market equals
A) 6q/6p.
B) p × q.
C) 6(p × q)/6q.
D) (p × q)/q.
E) 6p × 6q.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the firm is a price taker and cannot influence the market price. Therefore, the total revenue earned by the firm is simply the product of the market price (p) and the quantity of output sold (q), which is represented by the equation TR = p × q.

Total Revenue (TR) for an Individual Firm in a Perfectly