Table 14-5
The table represents a demand curve faced by a firm in a competitive market.
-Refer to Table 14-5. For this firm, the marginal revenue of the 12th unit is
A)$9.
B)$10.
C)$11
D)The marginal revenue cannot be determined without knowing the total revenue when 11 units are sold.

Question

Table 14-5
The table represents a demand curve faced by a firm in a competitive market. 
-Refer to Table 14-5. For this firm, the marginal revenue of the 12th unit is
A)$9. 
B)$10. 
C)$11 
D)The marginal revenue cannot be determined without knowing the total revenue when 11 units are sold.

Quizplus · Accepted Answer

Since the market is competitive, the firm is a price taker and faces a constant price of $11 regardless of the quantity it sells. Therefore, the marginal revenue of the 12th unit is also $11.

Table 14-5 The Table Represents a Demand Curve Faced by a Firm