WAEC Economics 2020 Question 21

Question 21

Market Structures

Use the table below (Table 1, the total revenue schedule of a firm) to answer the question.
Output (units) | 50 | 60 | 70 | 80 | 90
Total revenue (TR) $ | 85 | 102 | 119 | 136 | 153
What is the unit price of the firm's output?

  1. A.$10.00
  2. B.$2.70
  3. C.$2.00
  4. D.$1.70
Show the answer and explanation

Answer: D ($1.70)

Explanation

Price = TR ÷ output = 85 ÷ 50 = $1.70.