The Total Revenue of a Purely Competitive Firm from Selling

question 314

Multiple Choice

The total revenue of a purely competitive firm from selling 200 units of output is $1,000. Based on this information, the unit price of the output must be

• A)$5.
• B)$1,200.
• C)$200,000.
• D)$800.

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Definitions:

Candy Bars

Pre-packaged bars made primarily of chocolate and often combined with other ingredients like nuts, caramel, or nougat.

Marginal Utility

The change in satisfaction or utility an individual gains from consuming one additional unit of a good or service.

Consumer Equilibrium

In marginal utility theory, the combination of goods purchased that maximizes total utility by applying the utility-maximizing rule.

Prices

The amount of money required to purchase a good or service, often determined by the forces of supply and demand in the market.