If a firm in a perfectly competitive market faces a market price of $8, and it decides to increase its production from 300 units to 550 units, the firm's total revenue will:
A. stay the same at $8.
B. decrease from $4,400 to $2,400.
C. increase from $2,400 to $4,400.
D. likely rise, but it cannot be determined by how much.
Answer: C
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"For whom is a given mix of goods and services to be produced? How, in other words, are the society's outputs to be distributed among its members?" In a market economy, this question is resolved primarily in the:
A. Public sector through the mechanism of central planning B. Business sector through the mechanism of advertising C. Private sector through the earning and spending of income D. Money market through borrowing and saving by households and businesses
At equilibrium in a market for a product, the total revenues received by sellers equal the
A. market producer surplus. B. total amount spent by buyers on the product. C. market consumer surplus. D. total profit of sellers.