Suppose a firm in a competitive market received $1,000 in total revenue and had a marginal revenue of $10 for the last unit produced and sold.What is the average revenue per unit,and how many units were sold?

Question

Quizplus · Accepted Answer

In a competitive market, average revenue equals marginal revenue, which is the price per unit. Since the marginal revenue is $10, the average revenue is also $10. Total revenue is $1,000, so the number of units sold is $1,000 / $10 = 100 units.

Suppose a Firm in a Competitive Market Received $1,000 in Total