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Reptile [31]
3 years ago
6

Suppose a firm in a competitive market earned $3,000 in total revenue and had a marginal revenue of $30 for the last unit produc

ed and sold. What is the average revenue per unit, and how many units were sold
Business
1 answer:
Vera_Pavlovna [14]3 years ago
3 0

Answer:

100 units were sold at $30 per unit

Explanation:

theoretically, in a perfect competition market, the price of a good = marginal revenue = marginal cost. Also, the market sets the price, not the individual firm.

If total revenue = $3,000 and marginal revenue per unit = $30, then we can assume that the sales price of each unit was $30, therefore, they sold $3,000 / $30 = 100 units.

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