The total revenue of a purely competitive firm from selling 50 units of output is $300. Based on this information, total revenue for 60 units of output must be
A)$360.
B)$306.
C)$350.
D)$1,800.

Question

Quizplus · Accepted Answer

In a purely competitive market, the price per unit is constant regardless of the quantity sold. If 50 units generate $300, each unit sells for $300/50 = $6. Therefore, selling 60 units would generate 60 * $6 = $360.

The Total Revenue of a Purely Competitive Firm from Selling