Suppose a perfectly competitive firm's total revenue equals $210 and its output is 70 units when the firm's marginal-cost curve intersects its marginal-revenue curve.Since the firm is a profit-maximizing firm,what is marginal revenue equal to?

Question

Quizplus · Accepted Answer

In a perfectly competitive market, marginal revenue equals the price of the good. Total revenue is $210 for 70 units, so the price per unit (and thus marginal revenue) is $210/70 = $3.

Suppose a Perfectly Competitive Firm's Total Revenue Equals $210 and Its