Profit equals revenue minus cost. We have looked at costs. We now turn to revenue. Let us assume that firm S is a price In other words, it faces a (i) downward-sloping / horizontal (ii) demand curve / supply curve (Delete as appropriate.) Let us assume that it faces a market price of £2 per unit for its product. What is its total revenue from selling: (i) 5 units? ................................ (ii) 8 units? ................................ (c) What shape is its total revenue curve? ................................................................
- Profit equals revenue minus cost. We have looked at costs. We now turn to revenue. Let us assume that firm S is a price
- In other words, it faces a (i) downward-sloping / horizontal (ii) demand curve / supply curve
(Delete as appropriate.)
Let us assume that it faces a market price of £2 per unit for its product.
- What is its total revenue from selling:
(i) 5 units? ................................
(ii) 8 units? ................................
(c) What shape is its total revenue curve? .......................................................................................
(d) What will be its marginal revenue from selling:
(i) the fifth unit? ................................
(ii) the eighth unit? ................................
(e) What shape is its marginal revenue curve?................................................................................
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