Question 21
Market StructuresUse 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?
- A.$10.00
- B.$2.70
- C.$2.00
- D.$1.70
Show the answer and explanation
Answer: D ($1.70)
Explanation
Price = TR ÷ output = 85 ÷ 50 = $1.70.