If a Perfectly Competitive Firm Has Total Revenue of $400

question 328

Multiple Choice

If a perfectly competitive firm has total revenue of $400 when it produces 100 units, and if its total revenue increases to $404 when it produces 101 units, then the marginal revenue of the last unit produced is

• A) $404.
• B) $4.
• C) $1.
• D) $0.25.

Understand the method of substitution for solving systems of equations.

Graph equations and determine the existence of solutions.

Interpret and write the standard form of the equation of a hyperbola.

Use a graphing calculator for solving systems of equations.

---

Definitions:

DFL

Degree of Financial Leverage, a ratio that measures the sensitivity of a company's earnings per share to fluctuations in its operating income, based on its capital structure.

ROCE

Return on Capital Employed; a financial ratio that measures a company's profitability and the efficiency with which its capital is used.

Financing Charges

Interest and other costs associated with borrowing funds or purchasing goods and services on credit.

ROE

Return on Equity; a financial ratio that measures the profitability of a company in relation to the amount of equity, indicating how effectively shareholder equity is being utilized to generate profits.