M/c question - Micro 23) When a firm in a competitive market receives $5000 in total revenue, it has a marginal revenue of $100. What is the average revenue, and how many units were sold?  A. $100 and 100 units  B. $100 and 50 units  C. $50 and 50 units  D. $50 and 100 units

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter9: Price Takers And The Competitive Process
Section: Chapter Questions
Problem 15CQ
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M/c question - Micro

23) When a firm in a competitive market receives $5000 in total revenue, it has a marginal revenue of $100. What is the average revenue, and how many units were sold?

  •  A. $100 and 100 units
  •  B. $100 and 50 units
  •  C. $50 and 50 units
  •  D. $50 and 100 units

22)  Scenario 14-1 Assume a certain firm is producing 1000 units of output (so Q = 1000). At Q = 1000, the firm’s marginal cost equals $15 and its average total cost equals $11. The firm sells its output for $12 per unit. Refer to Scenario 14-1. At Q = 1000, what is the firm’s profit?

  •  A. $1000
  •  B. -$200
  •  C. $3000
  •  D. $4000

 

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