Suppose a firm in a competitive market earned $1,000 in total revenue and had a marginal revenue of $10 for the last unit produced and sold. What is the average revenue per unit, and how many units were sold?
a. $5 and 50 units
b. $5 and 100 units
c. $10 and 50 units
d. $10 and 100 units
d
You might also like to view...
According to Tobin's q theory, ________ policy can affect ________ spending through its effect on the prices of common stock
A) fiscal; consumption B) fiscal; investment C) monetary; consumption D) monetary; investment
An increase in the marginal propensity to consume necessarily reduces the marginal propensity to save
a. True b. False Indicate whether the statement is true or false
Which of the following instruments are traded in a money market?
A) bank commercial loans B) commercial paper C) state and local government bonds D) residential mortgages
You offer an extended warranty for your product that is purchased by a few customers. If the product typically fails 2% of the time,
a. you should price the warranty at less than 2% of the product price b. you should price the warranty at exactly 2% of the product price c. you should price the warranty at more than 2% of the product price d. Cannot tell from this information