Multiple Choice
The firm shuts down at any price below:
11. Perfect Competition
Short Run Shutdown Decision
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The price for a pair of edible underpants is $50. In the short-run, the firm's total revenue is:
A
$0
B
$50
C
$200
D
None of the above
Verified step by step guidance1
Identify the formula for total revenue, which is Total Revenue = Price x Quantity.
From the problem, the price of a pair of edible underpants is given as $50.
To find the total revenue, we need to determine the quantity sold that results in a total revenue of $200.
Set up the equation using the total revenue formula: 200 = 50 x Quantity.
Solve for Quantity by dividing both sides of the equation by 50, which will give you the quantity needed to achieve a total revenue of $200.
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