Consider the following production and cost schedule for a firm.The first column shows the number of units of a variable factor of production employed by the firm.
TABLE 13-1
-Refer to Table 13-1.The total revenue of the output produced by 12 units of the factor is
A)$120.
B)$520.
C)$640.
D)$768.
E)$1440.

Question

Consider the following production and cost schedule for a firm.The first column shows the number of units of a variable factor of production employed by the firm.
  TABLE 13-1
-Refer to Table 13-1.The total revenue of the output produced by 12 units of the factor is
A)$120. 
B)$520. 
C)$640. 
D)$768. 
E)$1440.

Quizplus · Accepted Answer

According to the table, when 12 units of the variable factor are employed, the firm produces 8 units of output, and the price per unit is $80. Therefore, the total revenue of output produced by 12 units of the factor is:
Total revenue = Price per unit x Quantity = $80 x 8 = $640.

Consider the Following Production and Cost Schedule for a Firm