Table 14-6 The following table presents cost and revenue information for a firm
ID: 1115500 • Letter: T
Question
Table 14-6 The following table presents cost and revenue information for a firm operating in a competitive industry COSTS REVENUES Quantity Total Marginal Quantity Pricel rginal Produced Cost Cost Demanded Revenue Revenue 0 $100 $150 $202 $257 $317 $385 S465 S562 $682 $120 $120 $120 $120 $120 $120 $120 $120 $120 4 4 6 6. Refer to Table 14-6. What is the total revenue from selling 7 units? a. $120 b. $490 c. $562 d. $840 7. Refer to Table 14-6. What is the average revenue when 4 units are sold? a. $60 b. $120 c. $125 d. $197 8. In a competitive market, the actions of any single buyer or seller will Have a negligible impact on the market price. a. b. Have little effect on market equilibrium quantity but will affect market equilibrium price. c. Affect marginal revenue and average revenue but not price. d. Adversely affect the profitability of more than one firm in the market.Explanation / Answer
Q6
Answer
Option d
total revenue=P*Q=7*120=840
Q7
Answer
Option b
Average revenue is same as price if the price is constant at all the quantity
AR=TR/Q
AR=(4*120)/4=$120
Q8
Answer
Option a
The market has as much seller as no one will impact on the market so the effect is negligible.
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