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Thapter 9 POP Assignment Saved ATC 4. PRICE (des per unit) PRICE OR COST AVC AR 0.5 points 8 00:04:34 0 QUANTITY 0 QUANTITY I
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Answer #1

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Option 2
reduce the total revenue to zero
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The firm is in perfect competition as it is a price taker so the P=MR=$4 and if the firm increase price then no one will buy from the firm as a consumer has perfect knowledge of the market so the total revenue is zero
total revenue =P*Q
Q=0 then TR=0

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