Table 81 shows the shortrun cost data of a perfectly competi

Table 8-1 shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases. Assume that output can only be increased in batches of 100 units.

2) Refer to Table 8-1. If the market price of each camera case is $8 what is the firm’s

total revenue?

a. $2,400

b. $3,200

c. $4000

d. $4,800

Quantity

Total Cost

(Dollars)

Variable Cost

(Dollars)

0

$1,000

$0

100

1,360

360

200

1,560

560

300

1,960

960

400

2,760

1,760

500

4,000

3,000

600

5,800

4,800

Solution

b. 3200