Asked by Mercedez Miller on May 05, 2024
Verified
If a firm in a perfectly competitive market triples the quantity of output sold, then total revenue will
A) less than triple.
B) more than triple.
C) exactly triple.
D) be reduced by one third.
Total Revenue
The total receipts from sales of goods or services provided by a company.
Perfectly Competitive Market
A market structure characterized by many buyers and sellers, all of whom have full information and the products are homogeneous, leading to no single buyer or seller being able to influence the market price.
Quantity Of Output
The total amount of goods or services produced by a company, sector, or economy during a specified period.
- Discern between the average proceeds, marginal proceeds, and their critical role in enterprises dedicated to maximizing financial gains.
Verified Answer
NN
Nicole NorrisMay 11, 2024
Final Answer :
C
Explanation :
In a perfectly competitive market, the price remains constant regardless of the quantity of output sold, so if the quantity of output sold triples, total revenue also triples.
Learning Objectives
- Discern between the average proceeds, marginal proceeds, and their critical role in enterprises dedicated to maximizing financial gains.