If a firm in a perfectly competitive market facing a market price of $4 decides to produce 700 units of a good, what will the firm's average revenue be?

Name: If a firm in a perfectly competitive market facing a market price of $4 decides to produce 700 units of a good, what will the firm's average revenue be?
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Question

Quizplus · Accepted Answer

In a perfectly competitive market, the average revenue (AR) is equal to the market price. Since the firm is facing a market price of $4, the average revenue per unit will also be $4.

If a Firm in a Perfectly Competitive Market Facing a Market