A purely competitive firm currently producing 30 units of output earns marginal revenues of $12 from each extra unit of output it sells. If it sells 30 units, then its total revenues would be
A)$360.
B)$240.
C)$120.
D)indeterminate based on the information given.

Question

Quizplus · Accepted Answer

Total revenue is calculated by multiplying the price (or marginal revenue in the case of perfect competition) by the quantity sold. Therefore, $12 per unit times 30 units equals $360.

A Purely Competitive Firm Currently Producing 30 Units of Output