Consider the price and quantity data below for a perfectly competitive firm producing mousetraps.
TABLE 9-1
-Refer to Table 9-1.If this firm is producing 1250 mousetraps,its total revenue is ________,its average revenue is ________ and its marginal revenue is ________.
A)$5; $5; $5
B)$6250; $250; $5
C)$1750; $250; $5
D)$5000; $5; $250
E)$6250; $5; $5

Question

Consider the price and quantity data below for a perfectly competitive firm producing mousetraps.
  TABLE 9-1
-Refer to Table 9-1.If this firm is producing 1250 mousetraps,its total revenue is ________,its average revenue is ________ and its marginal revenue is ________.
A)$5; $5; $5 
B)$6250; $250; $5 
C)$1750; $250; $5 
D)$5000; $5; $250 
E)$6250; $5; $5

Quizplus · Accepted Answer

Total revenue is calculated by multiplying the quantity (1250) by the price per unit ($5), which equals $6250. Average revenue is total revenue divided by quantity, which is $5. Marginal revenue is the additional revenue from selling one more unit, which is also $5.

Consider the Price and Quantity Data Below for a Perfectly