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21 October, 14:33

When a certain competitive firm produces and sells 100 units of output, marginal revenue is $80. When the same firm produces and sells 200 units of output, what is average revenue? a. $40 b. $80 c. $160 d. This cannot be determined from the given information.

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  1. 21 October, 14:35
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    d. This cannot be determined from the given information

    Explanation:

    To find the average revenue of 200 units it is necessary to know the total units. However, the function of the marginal revenue is not given. It is impossible to infer the marginal revenue (price) of other units (of output) only from knowing the marginal revenue of the 100th unit.
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