Asked by Breydon English on Jun 10, 2024
Verified
The total revenue of a purely competitive firm from selling 6 units of output is $48. Based on this information, the unit price of the output must be
A) $8.
B) $42.
C) $288.
D) $54.
Unit Price
The cost per unit of quantity of a product, allowing consumers to compare prices between different sized packages of the same item.
Competitive Firm
A business that operates in a market where it must compete against other firms for customers and resources.
- Identify the connection among total revenue, marginal revenue, and production quantities in a purely competitive market.
Verified Answer
KP
Katina PickensJun 16, 2024
Final Answer :
A
Explanation :
The total revenue is calculated by multiplying the unit price by the quantity sold. Given a total revenue of $48 from selling 6 units, the unit price is $48 / 6 = $8.
Learning Objectives
- Identify the connection among total revenue, marginal revenue, and production quantities in a purely competitive market.
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