We can estimate that the cost is $4.67. The marginal revenue of perfectly competitive firm x is 4.67 when it sells three units of goods. The marginal revenue is 4.67 when it sells 100 units.
The income gain brought on by the sale of one additional unit of output is known as marginal revenue. The law of diminishing returns dictates that marginal revenue will eventually start to decline as output level firm grows, even though it can remain constant above a given threshold of output. According to economic theory, perfectly competitive businesses continue to produce goods and services until marginal revenue and marginal cost are equal.
We know that, for a perfectly competitive firm, the marginal revenue (MR) is equal to the price (P)
That is, P = MR
A) Output = three units
Here, for a perfectly competitive firm X, when it sells three units of product Z, its marginal revenue (MR) is $4.67.
So, when it sells three units, the price (P) of product Z is = $ 4.67 ( As, for a competitive firm, P = MR )
B) Output = hundred units
Now, for a perfectly competitive firm X, when it sells a hundred units of firm product Z, its marginal revenue (MR) is $4.67.
( As, for a competitive firm, the marginal revenue and price stay the same irrespective of the level of output )
Similarly, when it sells a hundred units of product Z, the price (P) will be = $ 4.67 [ As, P = MR ]
So, we can conclude that the price is: $ 4.67
Learn more about marginal revenue here
brainly.com/question/13383966
#SPJ4
