A perfectly competitive firm faces the market price of $R s . 20$ per unit. Derive its $T R$ schedule for a range of output from $1$ to $10$ units. What will happens to market price if the firm decides to suspend its production for the time being?

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Solution

Output (Units) $1$ $2$ $3$ $4$ $5$ $6$ $7$ $8$ $9$ $10$
Price (Rs.) $20$ $20$ $20$ $20$ $20$ $20$ $20$ $20$ $20$ $20$
Total Revenue (Rs.) $20$ $40$ $60$ $80$ $100$ $120$ $140$ $160$ $180$ $200$
If the firm decides to suspend its production for the time being, the market price will not change. Because the supply of a single seller cannot influence the market supply in a perfectly competitive market.

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Similar questions

Q. At what rate

T R

of the firm will increase if it is facing a perfectly elastic demand curve, and price of the product happens to be

R s . 10

per unit. Give logical reasoning.

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Output (units)	0	1	2	3	4	5	6	7	8	9	10
MC(Rs.)	-	11	10	9	8	7	6	7	10	13	19
TC(Rs.)	9	20	30	39	47	54	60	67	77	90	109

If the market price is Rs. 13, to maximize profits the firm should produce ___________.

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At the market price of Rs 10, a firm supplies 4 units of output. The market price increases to Rs 30. The price elasticity of the firm’s supply is 1.25. What quantity will the firm supply at the new price?

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Output (Units)	$1$	$2$	$3$	$4$	$5$	$6$	$7$	$8$	$9$	$10$
Price (Rs.)	$20$	$20$	$20$	$20$	$20$	$20$	$20$	$20$	$20$	$20$
Total Revenue (Rs.)	$20$	$40$	$60$	$80$	$100$	$120$	$140$	$160$	$180$	$200$

A perfectly competitive firm faces the market price of Rs.20 per unit. Derive its TR schedule for a range of output from 1 to 10 units. What will happens to market price if the firm decides to suspend its production for the time being?

A perfectly competitive firm faces the market price of $R s . 20$ per unit. Derive its $T R$ schedule for a range of output from $1$ to $10$ units. What will happens to market price if the firm decides to suspend its production for the time being?