If a firm in a perfectly competitive market doubles the number of units of output sold,what will happen to total revenue

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the firm is a price taker, meaning it cannot influence the market price. Therefore, if the firm doubles the number of units sold, the total revenue will also double since the market price remains constant. The formula for total revenue (TR) is TR = P x Q, where P is the market price and Q is the quantity sold. Therefore, doubling Q while P remains constant will result in a doubling of TR.

If a Firm in a Perfectly Competitive Market Doubles the Number