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Pachacha [2.7K]
3 years ago
13

Consider a firm that operates in a perfectly competitive market. Currently the firm is producing 50 units of output and at that

output level, marginal revenue is $6. Suppose that the firm increases output by 50%. Total revenue will be:____________
Business
1 answer:
Norma-Jean [14]3 years ago
6 0

Answer:

$450

Explanation:

Data given in the question

Number of the units produced is 50 units

Marginal revenue is $6

Now the output increase by 50%

So, the total revenue is

= Number of units produced × marginal revenue + increased output percentage × (Number of units produced × marginal revenue)

= 50 units × $6 + 50% of $300

= $300 + $150

= $450

We simply compute by applying the above information

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