Wrong! The correct answer is-->This firm is perfectly competitive, so its output rate is so small in relation to the industry as a whole that its production could not influence the market price, which would remain at $7
per unit.
The market price equals the firm's marginal revenue, which therefore would be MRequals
$7
per unit.
The firm's hourly total revenues if it were to produce 12 units would be TRequals
$7 times 12equals$84.
I apologize for the confusion. Based on the information provided, the corrected answer would be:
If the firm is perfectly competitive and the market price is $7 per unit, the firm's output rate would not influence the market price. The market price would remain at $7 per unit.
The firm's marginal revenue would indeed equal the market price, which is $7 per unit.
If the firm were to produce 12 units, the firm's total revenues would be calculated by multiplying the market price ($7) by the number of units produced (12), resulting in $84.
Thank you for bringing this to my attention.