Answer:
The correct answer is option b.
Explanation:
The total revenue of a firm in a competitive market is $1,000.
The marginal revenue for the last unit produced is $10.
We know that in a competitive market, a single firm faces a horizontal line demand curve where average revenue and marginal revenue are equal. This straight-line demand curve represents demand as well as the average revenue curve and marginal revenue curve.
The average revenue per unit will thus be $10.
The average revenue is the ratio of total revenue and total output.
AR = [tex]\frac{TR}{Q}[/tex]
$10 = [tex]\frac{\$ 1,000}{Q}[/tex]
Q = [tex]\frac{\$ 1,000}{\$ 10}[/tex]
Q = 100 units
