Question

A firm in competitive market receives $600 in total revenue and has $10 as marginal revenue. 

What will be the average revenue and how many units were sold?

Answer 1

Total Revenue TR =$600

Marginal Revenue MR = $10

$\frac{d(TR)}{dQ}=MR ==>\frac{d(PQ)}{dQ}=MR$

as $P=MR$

$P= {}$$$10$

In perfect competition MR = Average Revenue.

As average revenue =$10

And $Q=\frac{TR}{P}=\frac{600}{10}=60$