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1. Below is a demand schedule facing an individual firm. Complete the table by computing average revenue, total revenue, and marginal revenue. Then answer the following two questions: (a) How can you tell whether a firm is operating in a market that is purely competitive? (b) What relationship exists between average revenue and marginal revenue? (6 marks) Quantity Average Total Marginal Price demanded revenue revenue revenue $30 0 $_____ $_____ ––– 30 1 _____ _____ $_____ 30 2 _____ _____ _____ 30 3 _____ _____ _____ 30 4 _____ _____ _____ 30 5 _____ _____ _____ 30 6 _____ _____ _____
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