When a Certain Competitive Firm Produces and Sells 100 Units

question 104

Multiple Choice

When a certain competitive firm produces and sells 100 units of output, marginal revenue is $80. When the same firm produces and sells 200 units of output, what is average revenue?

• A)$40
• B)$80
• C)$160
• D)This cannot be determined from the given information.

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Definitions:

Turnover Ratio

A measure of how frequently investments or inventory are bought and sold within a given period, indicating the liquidity or activity level.

Average Daily Assets

The mean value of assets held over a specified period, calculated by taking the sum of daily asset values and dividing by the number of days in the period.

Stock

A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.

Net Asset Value

The total value of an entity's assets minus the total value of its liabilities, often used in evaluating investment funds.