Sapling Learning Halibut Inc. sells halibut in a perfectly competitive market. H

Question

Sapling Learning Halibut Inc. sells halibut in a perfectly competitive market. Halibut Inc. is able to sell halbut for $500 per unit. In this market, there are 2,000 firms competing with one another. Last year, Halibut Inc. was able to earn an economic profit of $1,000,000. The firm has purchased a permit to fish this season, insurance in case one of their job, and a boat. Together, these items represent all of the firm's fixed costs and sum to $100,000. Last year, Halibut Inc.'s total revenue was $1,300,000. workers gets hurt on the What is the marginal revenue per unit for this firm? Number Previous Check Answer 0 Next +1 Exit Hint

Explanation / Answer

The answer is --- - $500 per unit.

TR = 1300000

and price $500 per unit.

we know that = TR = P*Q

1300000 = 500*Q

q = 2600

TR when q= 2400 = 500 * 2400 = 1200000

so, MR = 1300000 - 1200000 / 2600 -2400

MR = 100000 / 200 = $500

and we know that, for perfect competition, price is equal to its marginal revenue and average revenue.

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