-The above figure illustrates the demand for magazines. Newsagents will maximise their total revenue when they
A) sell 750 magazines a day.
B) charge $2.50 a magazine.
C) sell 375 magazines a day.
D) sell as many magazines as they can.

Question

-The above figure illustrates the demand for magazines. Newsagents will maximise their total revenue when they
A) sell 750 magazines a day. 
B) charge $2.50 a magazine. 
C) sell 375 magazines a day. 
D) sell as many magazines as they can.

Quizplus · Accepted Answer

Total revenue is maximized at the midpoint of a linear demand curve, which corresponds to selling 375 magazines a day in this context.

-The Above Figure Illustrates the Demand for Magazines