A firm in a perfectly competitive market produces 700 units. The average cost of producing each unit is $5 while the marginal cost is $7. What is the Total Revenue (total income) the firm earns by selling 700 units.

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter5: Investment Decisions: Look Ahead And Reason Back
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Question 10
A firm in a perfectly competitive market produces 700 units. The average cost of producing each
unit is $5 while the marginal cost is $7. What is the Total Revenue (total income) the firm earns by
selling 700 units.
$3500
O $4900
O $1400
Can't be determined because the price is not given
Transcribed Image Text:Question 10 A firm in a perfectly competitive market produces 700 units. The average cost of producing each unit is $5 while the marginal cost is $7. What is the Total Revenue (total income) the firm earns by selling 700 units. $3500 O $4900 O $1400 Can't be determined because the price is not given
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