A Competitive Firm Sells 500 Units of Output and Its

question 233

Short Answer

A competitive firm sells 500 units of output and its marginal revenue at 500 units of output is $35. The firm's total revenue amounts to __________.

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Definitions:

Production Function

A mathematical model that describes the relationship between input factors of production (like labor and capital) and the output of goods or services that result.

Factor Prices

The prices of inputs used in the production of goods or services, such as labor wages, rent for land, and profit for capital.

Output Cost

The total expenses incurred in the production of goods or services, including both variable and fixed costs.

Average Cost

The total cost of production divided by the quantity produced, indicating the cost of producing each unit of output.