Total revenue (TR)for an individual firm in a perfectly competitive market equals
A)p × q.
B)(p × q)/q.
C)△p × △q.
D)△q/△p.
E)△(p × q)/△q.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the firm is a price taker and sells its output at the market price. Therefore, the total revenue for the firm is calculated as the product of price (p) and quantity (q) sold, which is option A.

Total Revenue (TR)for an Individual Firm in a Perfectly Competitive