A Purely Competitive Firm Currently Producing 20 Units of Output

question 142

Multiple Choice

A purely competitive firm currently producing 20 units of output earns marginal revenues of $12 from each extra unit of output it sells. If it sells 30 units, then its total revenues would be

• A) $120.
• B) $240.
• C) $360.
• D) indeterminate based on the given information.

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Definitions:

Countervailing Duties

Tariffs levied on imported goods to offset subsidies made to producers of these goods in their home countries.

General Agreement

A broad contract or understanding between parties that outlines the terms and conditions of their relationship or agreement.

Imported Lumber

Refers to wood that has been sourced from another country and then brought into a domestic market for use or sale.

Tax Treatment

The specific way tax laws apply to various types of income, expenses, and investments.