Table 13-6
The following table presents cost and revenue information for a firm operating in a competitive industry.

-Refer to Table 13-6.What is the average revenue when 4 units are sold?

Question

Table 13-6
The following table presents cost and revenue information for a firm operating in a competitive industry.
 
-Refer to Table 13-6.What is the average revenue when 4 units are sold?

Quizplus · Accepted Answer

To find the average revenue when 4 units are sold, we can divide the total revenue (which is $480) by the number of units sold (which is 4). This gives us an average revenue of $120 per unit. 
The best choice for the firm in this competitive industry would be to produce and sell 5 units, as this is the level of output where the marginal cost ($75) equals the marginal revenue ($120). Any level of output beyond this point would result in decreasing profits for the firm.

Table 13-6 the Following Table Presents Cost and Revenue Information for a for a Firm