Question

A firm in a perfectly competitive industry is currently producing 6,000 units of output and the market equilibrium price for the good is ​$5.00. If the firm chooses to increase its output by one additional unit, total revenue (TR) is $:________

Answer 1

30005

Step-by-step explanation:

Total Revenue equals price multiple to the quantity produced.

Total Profit= Total Revenue -Total Cost= P*Q- (Variable costs +Fixed Costs)

If we considered TR=P*Q,

in the first period it will be: TR=P*Q=6000*5=30000

in the second period it will be= TR=P*Q= 6001*5=30005