Asked by Raman Hundal on Jul 25, 2024

verifed

Verified

When a competitive firm produces and sells 600 units of output, its total revenue is $35,970. What is the firm's total revenue when it produces and sells 620 units of output?

Competitive Firm

A company that operates in a market where it must take the prevailing market price as given because the firm's individual sales do not significantly affect the market price.

Total Revenue

The total income generated by a firm from selling its goods or services, calculated as the price per unit times the number of units sold.

Output Units

Refers to the quantity of goods or services produced within a given time frame.

  • Calculate and describe the overall income and profit results, given distinct sales and cost figures for a corporation in a competitive market framework.
verifed

Verified Answer

AK
Arjun KhadkaJul 30, 2024
Final Answer :
The price (average revenue) is $35,970/600 = $59.95. On 620 units of output, total revenue is $59.95 X 620 = $37.169.