Refer to the information provided in Table 13.3 below to answer the question(s) that follow.
Table 13.3
$$\begin{array} { | c | c | }
\hline \text { Price } ( \$ ) & \text { Quantity } \
\hline 4.00 & 100 \
\hline 3.50 & 200 \
\hline 3.00 & 300 \
\hline 2.50 & 400 \
\hline 2.00 & 500 \
\hline 1.50 & 600 \
\hline 1.00 & 700 \
\hline
\end{array}$$
-Refer to Table 13.3. If a monopoly faces the demand schedule given in the table, at what level of output is its total revenue maximized?
A) 200
B) 300
C) 500
D) 600

Question

Refer to the information provided in Table 13.3 below to answer the question(s) that follow.
Table 13.3
 $$\begin{array} { | c | c | } 
\hline \text { Price } ( \$ ) & \text { Quantity } \
\hline 4.00 & 100 \
\hline 3.50 & 200 \
\hline 3.00 & 300 \
\hline 2.50 & 400 \
\hline 2.00 & 500 \
\hline 1.50 & 600 \
\hline 1.00 & 700 \
\hline
\end{array}$$
-Refer to Table 13.3. If a monopoly faces the demand schedule given in the table, at what level of output is its total revenue maximized?
A) 200
B) 300
C) 500
D) 600

Quizplus · Accepted Answer

Total revenue is maximized where the change in revenue from selling additional units begins to decrease. To find this, calculate the total revenue at each price point (Price * Quantity) and identify where the increase in total revenue from selling additional units starts to decline. At 500 units (Price = $2.00, Total Revenue = $2.00 * 500 = $1000), total revenue is maximized before it starts to decrease or increase at a decreasing rate with additional units sold.

Refer to the Information Provided in Table 13 -Refer to Table 13