If a perfectly competitive firm increases production from 10 units to 11 units and the market price is $20 per unit,total revenue for 11 units is:

Question

Quizplus · Accepted Answer

Total revenue for 10 units is:
TR = 10 x $20 = $200
Total revenue for 11 units is:
TR = 11 x $20 = $220
Therefore, the increase in total revenue from producing 11 units instead of 10 units is $220 - $200 = $20.

If a Perfectly Competitive Firm Increases Production from 10 Units