This a table of the purely competitive string bean industry

This a table of the purely competitive string bean industry which consists of 100 identical firms Quantity Quantity Demanded Price Supplied 400,000 500,000 600,000 700,000 800,000 $5 4 3 2 800,000 700,000 600,000 500,000 400,000 For each of the 100 firms in this industry, marginal revenue and total revenue will be: O $3 and $30.000. respectively O $4 and $400,respecively O $4 and S20,000, respectively O spéctve)y $3 and $18,000 Type here to seareh

Solution

Ans:

$3 and $18,000 respectively

Analysis

when the price is $3, the market is in equilibrium.i.e quantity demanded(600,000) is equal to quantity supplied(600,000).

Marginal revenue is the additional revenue from sales of an additional unit of output.marginal revenue = $3.

Total revenue for each firm = Total revenue / No of firms

                                             = (600,000 * $3) / 100

                                             = $1800,000 / 100

                                             = $18000