Use the following to answer question:
-(Figure: A Perfectly Competitive Firm in the Short Run)Use Figure: A Perfectly Competitive Firm in the Short Run.The firm's total revenue from the sale of its most profitable level of output is:

Question

Use the following to answer question: 
-(Figure: A Perfectly Competitive Firm in the Short Run)Use Figure: A Perfectly Competitive Firm in the Short Run.The firm's total revenue from the sale of its most profitable level of output is:

Quizplus · Accepted Answer

The firm's total revenue is equal to the price per unit times the quantity sold. The most profitable level of output is where marginal cost equals marginal revenue. At this point, the firm is producing output Q* and selling it at price P*. Total revenue is equal to P*Q*, which is represented by the area of rectangle 0GLD.

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