Exercise on Revenue of a Competitive Firm: Solutions

Question: Fill in the question mark spaces of the below table.
QPTRARMR
0 $20 ????? n/a
1 $20 ????? ????? ?????
2 $20 ????? ????? $20
3 $20 ????? ????? ?????
4 $20 ????? ????? ?????
5 $20 $100 ????? $20


Solution:
QP = MR TR = P × QAR = TR / QMR = ΔTR / ΔQ
0 $20 $0 n/a ------
1 $20 $20 $20 $20
2 $20 $40 $20 $20
3 $20 $60 $20 $20
4 $20 $80 $20 $20
5 $20 $100 $20 $20


For more details, please contact me here.
Date of last modification: 2019