The table given below shows the price of each unit of the product manufactured by a firm and the marginal cost of producing different units of the output.Table: 10.1

-A firm's total revenue is $400 for 8 units of output, $600 for 12 units of output, and $1,100 for 22 units of output. Evidently this firm is operating in a(n):

Question

The table given below shows the price of each unit of the product manufactured by a firm and the marginal cost of producing different units of the output.Table: 10.1
 
-A firm's total revenue is $400 for 8 units of output, $600 for 12 units of output, and $1,100 for 22 units of output. Evidently this firm is operating in a(n):

Quizplus · Accepted Answer

In a perfectly competitive market, the price remains constant as output increases. Here, the price per unit is constant at $50 ($400/8, $600/12, $1100/22), indicating a perfectly competitive market.

The Table Given Below Shows the Price of Each Unit