Question 28
MediumOriginal questionA price-taking firm's TR rises by ₹25 for every extra unit it sells. What is the market price?
Show the answer and explanation
CorrectNot quiteAnswer A
Correct answer: A
Explanation
The rise in TR per unit is MR, and for a price taker MR = P.
So the price is ₹25.
- Concept
- Price from the TR line
- Typical timeTypical
- 70 s
- Your timeYours
- —
Practise this chapter →
Ten questions from Revenue & Producer's Equilibrium, at your own pace.