How is total revenue calculated for a firm in a perfectly competitive market ........

Economics (CUET) Theory of firm under perfect Competition

How is total revenue calculated for a firm in a perfectly competitive market?

Total cost multiplied by output

Market price divided by output

Market price multiplied by output

Output divided by market price

Total revenue (TR) is the market price (p) multiplied by the output (q).

This formula shows that total revenue increases linearly with output when the market price is constant.

Submit Error