Figure 16-3

-Refer to Figure 16-3.At the profit-maximizing,or loss-minimizing,output level,the firm in this figure has total revenue of approximately

Question

Figure 16-3
 
-Refer to Figure 16-3.At the profit-maximizing,or loss-minimizing,output level,the firm in this figure has total revenue of approximately

Quizplus · Accepted Answer

The profit-maximizing, or loss-minimizing output level occurs where marginal revenue (MR) equals marginal cost (MC). In this figure, that occurs at an output level of 150 units. 
At an output of 150 units, the price is $70 and the total revenue is approximately $10,500 (150 units x $70 per unit). Therefore, the correct answer is C) $10,500.

Figure 16-3 -Refer to Figure 16-3.At the Profit-Maximizing,or Loss-Minimizing,output Level,the Firm in Loss-Minimizing,output