If a competitive firm is (i)selling 1,000 units of its product at a price of $9 per unit and (ii)earning a positive profit,then

Name: If a competitive firm is (i)selling 1,000 units of its product at a price of $9 per unit and (ii)earning a positive profit,then
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Question

Quizplus · Accepted Answer

For a competitive firm, price equals marginal revenue and average revenue. Since the firm is earning a positive profit, its total cost must be less than total revenue, which is $9,000 (1,000 units * $9).

If a Competitive Firm Is (I)selling 1,000 Units of Its