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    Marginal Revenue

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    Consider the following demand schedule. Does it apply to a perfectly competitive firm? Compute marginal and average revenue.

    Price Quantity Price Quantity
    $100 1 $70 5
    $95 2 $55 6
    $88 3 $40 7
    $80 4 $22 8
    b. Suppose the marginal cost of producing the good in table is a constant $10 per unit of output. What quantity of output will the firm produce?

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    Solution Preview

    Please see the attachment.

    a) The table is attached with MR and AR calculated. It does not apply to perfect ...

    Solution Summary

    The solution goes into a fair amount of detail pertaining to the question being asked. The explanation is very good and yet concise and to the point. It is also very easy to follow along. Overall, a very good answer to the question being asked.