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.

---

Definitions:

Compensable Factors

Elements of a job that are used to determine the appropriate compensation for that job, such as skill level, effort, responsibility, and working conditions.

Working Conditions

The environment in which employees operate, including aspects like safety, hours, and physical demands.

Responsibilities

Duties and tasks that an individual or entity is required or expected to carry out or fulfill in a specific role or function.

Competency-Based Pay

A compensation strategy where employees are paid based on their skills, knowledge, and performance levels rather than their job title or position.