Use the following table to answer the question : Table 11-1 : shows the quantity demanded of a good at various prices for a monopoly firm.

-Refer to Table 11-1.The firm earns the maximum total revenue when it produces _____ units.
A)3
B)4
C)5

Question

Use the following table to answer the question : Table 11-1 : shows the quantity demanded of a good at various prices for a monopoly firm.

-Refer to Table 11-1.The firm earns the maximum total revenue when it produces _____ units.
A)3 
B)4 
C)5

Quizplus · Accepted Answer

The firm earns the maximum total revenue when it produces where the quantity demanded is the highest, which is at 5 units according to the table. At this quantity, the price is $6, and the total revenue is $30 (5 units x $6 per unit). If the firm produces fewer units, the price will be higher but the total revenue will be lower due to the lower quantity sold. If the firm produces more units, the price will be lower but the total revenue will also be lower due to the lower price. Therefore, producing 5 units is the best choice for maximizing total revenue for the monopoly firm.

Use the Following Table to Answer the Question : Table