A perfectly competitive firm has total revenues equal to $360 when it produces forty units. What is the marginal revenue for the forty-first unit?

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the marginal revenue is equal to the price of the product. Since the total revenue for 40 units is $360, the price per unit (and thus the marginal revenue) is $360/40 = $9.

A Perfectly Competitive Firm Has Total Revenues Equal to $360