Consider the Price and Quantity Data Below for a Perfectly

question 52

Multiple Choice

Consider the price and quantity data below for a perfectly competitive firm producing mousetraps.
TABLE 9-1
-Refer to Table 9-1.If this firm is producing 1250 mousetraps,its total revenue is ________,its average revenue is ________ and its marginal revenue is ________.

• A)$5; $5; $5
• B)$6250; $250; $5
• C)$1750; $250; $5
• D)$5000; $5; $250
• E)$6250; $5; $5

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Definitions:

Cash Sales

Transactions in which payment is received at the time of sale, typically in cash or equivalent.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that aim to make financial statements comparable across international boundaries.

Liabilities

Liabilities represent obligations that a company owes to external parties, which might include loans, accounts payable, and other debts.

Working Capital

The measure of a company's operational efficiency and short-term financial health, calculated as current assets minus current liabilities.