A Compute total revenue for each level of output Fill in the table B Compute average and

Question

A. Compute total revenue for each level of output. Fill in the table.

B. Compute average and

marginal revenue for each level of output. Fill in the table. (Remember to compute marginal revenue between successive level of output.)

C. Explain why for a perfectly competitive firm, AR = MR= p.

D. Plot the TR,MR, AND AR curves on a scale diagram. What is the slope of the TR curve?

Consider the following table showing the various rev –
ence concepts for Dairy Treat Inc ., a perfectly competi-
tive firm that sells milk by the litre . Suppose the firm
faces a constant market price of $2 per litre .
Total
Average
Marginal
Price
Revenue
Revenue
Revenue
( P )
Quantity
( IR )
( AR )
( MR )
$2
150
2
175
2
200
2
225
250
a . Compute total revenue for each level of output . Fill
in the table .
b. Compute average and marginal revenue for each
level of output . Fill in the table . ( Remember to
compute marginal revenue between successive lev-
els of output . )
C . Explain why for a perfectly competitive firm , AR –
MR = P .
d . Plot the IR , MR, and AR curves on a scale dia –
gram . What is the slope of the IR curve ?quot;
Economics