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belka [17]
4 years ago
11

A firm's total revenue in perfect competition is:_______

Business
1 answer:
schepotkina [342]4 years ago
7 0

Answer:

A) a linear, B) downward-sloping line.

Explanation:

  • As the company would maximize its profit thus it divides the total revenue by quantity. As a form in a competitive market with the perfect competition, it has a profit which is completely revenu to the total costs. Which is calculated by the formula:
  • Total Revenue = Price * Quantity
  • The Average Revenue will be  = Total Revenue / Quantity
  • The Marginal Revenue shall be  = Change in Total Revenue / Change in Quantity of the product.
  • The AR will be the amount of revenue a company receives for each unit of output. The MR will be the change in the total revenue of output sold.
  • For the perfect competition, both the AR and MR will be equal to price.
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