Asked by
Joahna Bartolome
on Nov 27, 2024
Verified
A purely competitive firm currently producing 30 units of output earns marginal revenues of $12 from each extra unit of output it sells. If it sells 30 units, then its total revenues would be
A) $360.
B) $240.
C) $120.
D) indeterminate based on the information given.
Marginal Revenues
Represents the additional income generated from the sale of one more unit of a good or service.
Total Revenues
The gross revenue obtained from merchandise or service transactions before removing any operational expenses.
- Recognize the relationship between total revenue, marginal revenue, and output levels in pure competition.
Verified Answer
TB
Learning Objectives
- Recognize the relationship between total revenue, marginal revenue, and output levels in pure competition.