If a firm in a perfectly competitive market faces a market price of $2,and it decides to increase its production from 2,000 units to 4,000 units,the firm's marginal revenue:

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In a perfectly competitive market, the marginal revenue a firm receives for any additional unit sold is the same as the market price, which is $2 in this case. Therefore, increasing the production from 2,000 units to 4,000 units will not affect the marginal revenue per unit, so it will stay the same at $2. Thus, the total revenue will increase from 2,000 units x $2 = $4,000 to 4,000 units x $2 = $8,000.

If a Firm in a Perfectly Competitive Market Faces a Market