Revenue of a Competitive Firm
Question:
Fill in the question mark spaces of the below table.
Revenue of a Competitive Firm
| Q | P | TR | AR | MR |
| 0 | $20 | ????? | n/a | |
| 1 | $20 | ????? | ????? | ????? |
| 2 | $20 | ????? | ????? | $20 |
| 3 | $20 | ????? | ????? | ????? |
| 4 | $20 | ????? | ????? | ????? |
| 5 | $20 | $100 | ????? | $20 |
Solution:
Revenue of a Competitive Firm - Solution
| Q | P = MR | TR = P × Q | AR = TR / Q | MR = ΔTR / ΔQ |
| 0 | $20 | $0 | n/a | ------ |
| 1 | $20 | $20 | $20 | $20 |
| 2 | $20 | $40 | $20 | $20 |
| 3 | $20 | $60 | $20 | $20 |
| 4 | $20 | $80 | $20 | $20 |
| 5 | $20 | $100 | $20 | $20 |
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