A firm in a perfectly competitive industry has total revenue of $200,000 per year when producing...

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A firm in a perfectly competitive industry has total revenue of $200,000 per year when producing...

A firm in a perfectly competitive industry has total revenue of $200,000 per year when producing 2000 units of output per year.

Find the firm’s marginal revenue?

business economics

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Answer 1

Answer #1

Marginal revenue is the ratio of change in total revenue to the change in quantity demanded

The revenue change here is $200000per year and the output is 2000 units .

So marginal revenue will be equal to

MR=200000/2000

MR=$100

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Answer 2

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