Exhibit 7-1 Quantity and total revenue data for a firm $$\begin{array} { | c | c | }
\hline \text { Quantity } & \text { Total Revenue } \
\hline 0 &\$ 0 \
1 & 62 \
2 & 124 \
3 & 186 \
\hline
\end{array}$$ Exhibit 7-1 indicates that this firm is operating in which type of market structure?

Question

Exhibit 7-1 Quantity and total revenue data for a firm $$\begin{array} { | c | c | } 
\hline \text { Quantity } & \text { Total Revenue } \
\hline 0 &\$ 0 \
1 & 62 \
2 & 124 \
3 & 186 \
\hline
\end{array}$$ Exhibit 7-1 indicates that this firm is operating in which type of market structure?

Quizplus · Accepted Answer

The table shows that as quantity increases, total revenue increases at a constant rate, indicating that the price remains constant regardless of the quantity sold. This is characteristic of perfect competition, where firms are price takers and cannot influence the market price.

Exhibit 7-1 Quantity and Total Revenue Data for a Firm