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The accompanying table represents the quantity produced, the total revenue, and the total cost of a firm operating in a perfectly competitive market. Use this table to answer this question: Assuming that all firms have the same revenue structure, the price is Quantity Total Revenue Total Cost 0 $0 $4 1 $10 $9 2 $20 $16 3 $30 $25 4 $40 $37 O $9 O $2 $3 $5 O $10 O

The accompanying table represents the quantity produced, the total revenue, and the total cost of a firm operating in a perfectly competitive market. Use this table to answer this question: Assuming that all firms have the same revenue structure, the price is Quantity Total Revenue Total Cost 0 $0 $4 1 $10 $9 2 $20 $16 3 $30 $25 4 $40 $37 O $9 O $2 $3 $5 O $10 O

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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### Understanding Revenue and Cost in a Perfectly Competitive Market The accompanying table illustrates the quantity produced, total revenue, and total cost for a firm operating in a perfectly competitive market. Use this table to determine the price under the assumption that all firms have the same revenue structure. | Quantity | Total Revenue | Total Cost | |----------|---------------|------------| | 0 | $0 | $4 | | 1 | $10 | $9 | | 2 | $20 | $16 | | 3 | $30 | $25 | | 4 | $40 | $37 | Given this data, the question is: Assuming that all firms have the same revenue structure, the price is _____. ### Choices for the Price - $9 - $2 - $3 - $5 - $10 To determine the price, consider the relationship between the quantity produced and the total revenue for each unit produced. In this case, the total revenue increases by $10 for each additional unit produced, indicating that the price per unit is $10.
Transcribed Image Text:### Understanding Revenue and Cost in a Perfectly Competitive Market The accompanying table illustrates the quantity produced, total revenue, and total cost for a firm operating in a perfectly competitive market. Use this table to determine the price under the assumption that all firms have the same revenue structure. | Quantity | Total Revenue | Total Cost | |----------|---------------|------------| | 0 | $0 | $4 | | 1 | $10 | $9 | | 2 | $20 | $16 | | 3 | $30 | $25 | | 4 | $40 | $37 | Given this data, the question is: Assuming that all firms have the same revenue structure, the price is _____. ### Choices for the Price - $9 - $2 - $3 - $5 - $10 To determine the price, consider the relationship between the quantity produced and the total revenue for each unit produced. In this case, the total revenue increases by $10 for each additional unit produced, indicating that the price per unit is $10.
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