Problem 1: Consider the following demand schedule. Does it apply to a perfectly competitive firm? Compute marginal and average revenue.
| Price |
Quantity |
Price |
Quantity |
| 100 |
1 |
70 |
5 |
| 95 |
2 |
55 |
6 |
| 88 |
3 |
40 |
7 |
| 80 |
4 |
22 |
8 |
Suppose the marginal cost of producing the good in the question is a constant $10 per unit of output. What quantity of output will the firm produce?