Question

The total revenue of a purely competitive firm from selling 6 units of output is $48. based on this information, the unit price of the output must be_________

Answer 1

The unit price of the output in a purely competitive market can be determined by dividing the total revenue by the quantity of output sold.

Step-by-step explanation:

In a purely competitive market, a firm is a price taker and cannot choose the price it charges. The unit price of the output can be determined by dividing the total revenue by the quantity of output sold. In this case, the total revenue is $48 and the quantity is 6 units. Therefore, the unit price of the output is $48 divided by 6, which is $8 per unit.