Suppose a firm’s total revenue is $100 when it sells 10 units, and $110 when it sells 11 units. The firm, therefore, is a(n):
1 answer:
Answer:
perfect competitor
Explanation:
Given:
Firm's total revenue when 10 units are sold = $100
Firm's total revenue when 11 units are sold = $110
Average Revenue =
or
Average Revenue = = $10
and,
the marginal revenue = $110 - $100 = $10
Since,
the average revenue and the marginal revenue for the firm is equal,
therefore, the is a perfect competitor
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<h3>What is a marginal labor?</h3>This refers to a firm increase in total production because of one additional unit of labor that is added while all other factors of production remain constant.
Given the information in the attached table, a total of 3 worker will be hired for the ranch if the going wage for these workers is $500 per week.
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