To maximize total revenues, one can set the derivative of the total revenue function equal to zero and solve.

Question

Quizplus · Accepted Answer

This is a correct statement. The derivative of the total revenue function gives the marginal revenue, which represents the additional revenue earned by selling one more unit of a product. Setting the derivative equal to zero helps to find the quantity of product that maximizes total revenue.

To Maximize Total Revenues, One Can Set the Derivative of the Total