Use the following to answer question:
Figure: Monopoly Model
-(Figure: Monopoly Model)Use Figure: Monopoly Model.When the firm is in equilibrium (that is,maximizing its economic profit),its total revenue is the area of rectangle:
A)SPDB.
B)IPDH.
C)0SBJ.
D)0PDJ.

Question

Use the following to answer question:
Figure: Monopoly Model 
-(Figure: Monopoly Model)Use Figure: Monopoly Model.When the firm is in equilibrium (that is,maximizing its economic profit),its total revenue is the area of rectangle:
A)SPDB. 
B)IPDH. 
C)0SBJ. 
D)0PDJ.

Quizplus · Accepted Answer

The total revenue is the price times the quantity sold. In equilibrium, the price is PD and the quantity sold is DJ. So the total revenue is the area of rectangle 0PDJ.

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