Question

Suppose a firm in a competitive market produces and sells 150 units of output and earns $1,800 in total revenue from the sales. If the firm increases its output to 200 units, total revenue will be

Answer 1

Answer: Total revenue would be $2400.

Explanation:

Since we have given that

Number of units sold = 150

Total revenue = $ 1800

If the number of units = 200

Let the total revenue be 'x'.

Since there is direct variation.

According to question, we get that

`(150)/(1800)=(200)/(x)\\\\150x=1800* 200\\\\150x=360000\\\\x=(360000)/(150)\\\\x=2400`

Hence, total revenue would be $2400.