Suppose a firm in a competitive market produces and sells 8 units of output and has a marginal revenue of $8.00.What would be the firm's total revenue if it instead produced and sold 4 units of output?

Question

Quizplus · Accepted Answer

Since the firm is operating in a competitive market, its marginal revenue is equal to the price of the product. Therefore, the price per unit is $8.00. If the firm produces and sells 4 units of output, its total revenue would be:
Total revenue = Price per unit x Quantity
Total revenue = $8 x 4
Total revenue = $32

Suppose a Firm in a Competitive Market Produces and Sells