Assume the market for lawn mowing is competitive.If a firm has no fixed costs and constant marginal costs, then a doubling of output will lead to a doubling of total revenue.

Question

Quizplus · Accepted Answer

In a competitive market with no fixed costs and constant marginal costs, the price of the product is equal to the marginal cost. Hence, if a firm doubles its output, it will double its revenue as well.

Assume the Market for Lawn Mowing Is Competitive