Question

Assume a competitive firm faces a market price of $10 per unit, a cost curve of $8 per unit at the quantity produced, and the fixed costs of $100. What would be the total revenue at the production of 20 units?

a) $100
b) $160
c) $200
d) $180

Answer 1

The total revenue for a competitive firm producing 20 units at a market price of $10 per unit is $200, which is option c).

Step-by-step explanation:

The student's question is about calculating the total revenue for a competitive firm at a given market price and production quantity. The total revenue for a competitive firm producing 20 units at a market price of $10 per unit is $200, which is option c).

When the market price is $10 per unit and the firm produces 20 units, the total revenue can be computed by multiplying the price per unit by the number of units produced.

Total Revenue = Price per Unit × Number of Units

Total Revenue = $10 × 20 = $200

Hence, the total revenue at the production of 20 units is $200, which corresponds to option c).