Homework Answers
Answer: d. marginal revenue times quantity of the product sold
Since a perfectly competitive firm is price taker, the marginal revenue=average revenue = price. The marginal revenue and average revenue curve coincide and this is the demand curve faced by the firm.
Total revenue = Price*Quantity = marginal revenue*quantity. Hence, option d is correct.
Option a is incorrect because average revenue = price and price*price is not total revenue.
Similarly marginal revenue*price = price*price which is not total revenue. Hence, Option b is incorrect
Option c is incorrect because revenue received on last unit sold is marginal revenue and not total revenue.
Option e is incorrect because it is price and not total revenue.
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