If a firm in a competitive market doubles its number of units sold, total revenue for the firm will
A)more than double.
B)double.
C)increase but by less than double.
D)may increase or decrease depending on the price elasticity of demand.

Question

Quizplus · Accepted Answer

In a competitive market, firms are price takers, meaning they sell their products at the market price. Therefore, if a firm doubles its units sold, its total revenue will double because the price per unit remains constant.

If a Firm in a Competitive Market Doubles Its Number