When a firm in a competitive market receives $8000 in total revenue,it has a marginal revenue of $20.What is the average revenue,and how many units were sold

Question

Quizplus · Accepted Answer

Marginal revenue is the additional revenue generated by selling one more unit. So, if the marginal revenue is $20 and the firm received $8000 in total revenue, it must have sold 400 units (($8000/$20) = 400). 
Average revenue is the total revenue divided by the number of units sold. 
Average revenue = Total Revenue / Number of Units Sold 
Average revenue = $8000 / 400 = $20 
Therefore, the correct answer is option D, which is $20 and 400 units.

When a Firm in a Competitive Market Receives $8000 in Total