Consider the price and quantity data below for a perfectly competitive firm producing mousetraps. $$\begin{array}{l}
\begin{array} { | l | l | }
\hline \text { Price } ( \$ ) & \text { Quantity } \
\hline 5 & 1000 \
\hline 5 & 1250 \
\hline 5 & 1500 \
\hline 5 & 1750 \
\hline 5 & 2000 \
\hline
\end{array}\
\text { TABLE 9- } 1
\end{array}$$
-Refer to Table 9- 1. If this firm is producing 1250 mousetraps, its total revenue is , its average revenue is and its marginal revenue is .
A) $5; $5; $5
B) $6250; $250; $5
C) $6250; $5; $5
D) $5000; $5; $250
E) $1750; $250; $5

Question

Consider the price and quantity data below for a perfectly competitive firm producing mousetraps. $$\begin{array}{l}
\begin{array} { | l | l | } 
\hline \text { Price } ( \$ ) & \text { Quantity } \
\hline 5 & 1000 \
\hline 5 & 1250 \
\hline 5 & 1500 \
\hline 5 & 1750 \
\hline 5 & 2000 \
\hline
\end{array}\
\text { TABLE 9- } 1
\end{array}$$
-Refer to Table 9- 1. If this firm is producing 1250 mousetraps, its total revenue is , its average revenue is and its marginal revenue is .
A) $5; $5; $5
B) $6250; $250; $5
C) $6250; $5; $5
D) $5000; $5; $250
E) $1750; $250; $5

Quizplus · Accepted Answer

Total revenue is calculated as price multiplied by quantity, which is $5 * 1250 = $6250. Average revenue is total revenue divided by quantity, which is $6250 / 1250 = $5. Marginal revenue in perfect competition is equal to the price, which is $5.

Consider the Price and Quantity Data Below for a Perfectly