Scenario 15-1
A monopoly firm maximizes its profit by producing Q = 500 units of output. At that level of output, its marginal revenue is $40, its average revenue is $80, and its average total cost is $44.
-Refer to Scenario 15-1. At Q = 500, the firm's total revenue is
A)$2,000.
B)$20,000.
C)$22,000.
D)$40,000.

Question

Quizplus · Accepted Answer

Total revenue is calculated as the quantity of goods sold multiplied by the price per unit. Given that the average revenue (which is the same as the price per unit in this context) is $80 and the quantity is 500 units, the total revenue is 500 * $80 = $40,000.

Scenario 15-1 A Monopoly Firm Maximizes Its Profit by Producing Q =