-Refer to the above table. This firm operates in a perfectly competitive market in which the market price is $5/unit. What is TRUE when the firm produces 110 units?

Question

Quizplus · Accepted Answer

When a firm operates in a perfectly competitive market, the price per unit is constant, and thus the marginal revenue (MR) equals the market price, which is $5/unit. Producing 110 units at a price of $5/unit would generate a total revenue of $550 (110 units * $5/unit). Without specific cost data, we can't calculate exact total costs or profits, but we can infer that if total costs exceed total revenue by $65, it means that the firm is not covering its costs at this production level, making option B the correct interpretation based on the information provided. Options A, C, and D cannot be confirmed without additional data such as total costs or marginal costs at 110 units.

-Refer to the Above Table