Howard knows he can sell as much or as little as he wants and the price he receives will not change. For Howard, price equals total revenue.

Question

Quizplus · Accepted Answer

For Howard, price does not equal total revenue. Total revenue is calculated by multiplying the price by the quantity sold. Howard's statement implies he is a price taker in a perfectly competitive market, where the price is given, but total revenue still depends on how much he sells.

Howard Knows He Can Sell as Much or as Little