### Understanding Revenue in Perfectly Competitive MarketsWhen a perfectly competitive firm sells additional units of output, its total revenue will:- ○ Increase at a constant rate- ○ Increase rapidly at first, then decline- ○ Increase at an increasing rate- ○ Increase at a decreasing rate- ○ Remain constantIn a perfectly competitive market, firms are price takers, which means they sell their products at a market-determined price. Therefore, as they sell more units, their total revenue increases at a constant rate, assuming the price remains unchanged.**Note:** There are no graphs or diagrams associated with this question.

Under the Perfectly competitive market there is large number of buyer and sellers in this market,…

When a perfectly competitive firm sells additional units of output, its total revenue will O increase at a constant rate O increase rapidly at first, then decline increase at an increasing rate O increase at a decreasing rate O remain constant

When a perfectly competitive firm sells additional units of output, its total revenue will O increase at a constant rate O increase rapidly at first, then decline increase at an increasing rate O increase at a decreasing rate O remain constant

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

### Understanding Revenue in Perfectly Competitive Markets

When a perfectly competitive firm sells additional units of output, its total revenue will:

- ○ Increase at a constant rate

- ○ Increase rapidly at first, then decline

- ○ Increase at an increasing rate

- ○ Increase at a decreasing rate

- ○ Remain constant

In a perfectly competitive market, firms are price takers, which means they sell their products at a market-determined price. Therefore, as they sell more units, their total revenue increases at a constant rate, assuming the price remains unchanged.

**Note:** There are no graphs or diagrams associated with this question.

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