Refer to the information provided in Figure 15.1 below to answer the question(s) that follow. Below are cost curves for Dom's Barber Shop, a monopolistically competitive firm. Figure 15.1
-Refer to Figure 15.1. If Dom's Barber Shop is maximizing profit, its total revenue equals

Question

Refer to the information provided in Figure 15.1 below to answer the question(s) that follow. Below are cost curves for Dom's Barber Shop, a monopolistically competitive firm.  Figure 15.1
-Refer to Figure 15.1. If Dom's Barber Shop is maximizing profit, its total revenue equals

Quizplus · Accepted Answer

If Dom's Barber Shop is maximizing profit, it will produce at the quantity where marginal cost equals marginal revenue. The total revenue is calculated by multiplying the price per unit by the quantity sold at this point. Based on the given options, $320 is the correct total revenue when profit is maximized.

Refer to the Information Provided in Figure 15