A firm facing a downward-sloping demand curve sells 50 units of output at $10 each.The firm's average revenue is _____
A)$500.
B)more than $10 but less than $500.
C)$10.
D)less than $10 but more than zero.
E)zero.

Question

Quizplus · Accepted Answer

The average revenue is calculated by dividing total revenue by the quantity sold. In this case, the firm sells 50 units at $10 each, so the total revenue is 50 x $10 = $500. Dividing by the quantity sold, the average revenue is $500/50 = $10. Therefore, the answer is C.

A Firm Facing a Downward-Sloping Demand Curve Sells 50 Units