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The total revenue of a purely competitive firm from selling 200 units of output is $1,000. Based on this information, the unit price of the output must be
A) $5.
B) $1,200.
C) $200,000.
D) $800.
Total Revenue
The entire revenue a company earns from selling products or services before deducting any costs.
Purely Competitive
A market structure characterized by many buyers and sellers, freely entering and exiting the market, with all firms selling identical or nearly identical products.
Unit Price
The cost per unit of a product or service, making it easier to compare the value of similar items.
- Assess the methods used to decide on pricing and output in fully competitive markets.
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Learning Objectives
- Assess the methods used to decide on pricing and output in fully competitive markets.
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