Table 13-4

-Refer to Table 13-4.For a firm operating in a competitive market,the marginal revenue is

Question

Table 13-4
 
-Refer to Table 13-4.For a firm operating in a competitive market,the marginal revenue is

Quizplus · Accepted Answer

In a competitive market, the price is equal to the marginal revenue. Therefore, the price for each unit is $15, and selling any additional unit would just bring in another $15. It is not economically feasible to produce more if the cost of producing additional units exceeds $15. Therefore, the firm should produce 4 units where the price/marginal revenue is equal to the minimum average variable cost, which is $10.50.

Table 13-4 -Refer to Table 13-4.For a Firm Operating in a Competitive