The total revenue of a purely competitive firm from 8 units of output is $48. Based on this information, total revenue for 9 units of output must be
A) $52.
B) $54.
C) $58.
D) $60.

Question

Quizplus · Accepted Answer

In a purely competitive market, the price remains constant regardless of the quantity sold. Therefore, if 8 units generate $48, the price per unit is $48/8 = $6. For 9 units, total revenue would be 9 * $6 = $54.

The Total Revenue of a Purely Competitive Firm from 8