Final answer:
When Wesley raises the price of widgets at his store, the total revenue from sales increases.
Step-by-step explanation:
When Wesley raises the price of widgets at his store, the total revenue from sales increases. This means that increasing the price of widgets leads to a higher total revenue for the store.
In a perfectly competitive market, the price of a product is determined by the market demand and supply. When the firm chooses the quantity to produce, along with the market prices, it will determine the firm's total revenue, total costs, and level of profits.
Total revenue is calculated by multiplying the quantity sold by the price charged. If the firm sells a higher quantity of output or if the market price of the product increases, then the total revenue will increase.