-The above figure shows the demand and cost curves for a firm in monopolistic competition. The firm earns total revenue of

Question

Quizplus · Accepted Answer

Total revenue is calculated by multiplying the price at which goods are sold by the quantity sold. In the context of a demand curve for a firm in monopolistic competition, without a specific figure to reference, we generally determine total revenue by identifying the equilibrium price and quantity levels where the firm's demand curve intersects its marginal cost curve. Assuming the firm is maximizing profit, it would set its output where marginal revenue equals marginal cost, and then use the demand curve to find the price. Total revenue is then this price times the quantity sold. The correct answer, D, suggests a specific numerical outcome that would depend on the details of the demand and cost curves provided in the figure, which are not described here. However, the correct process involves using the demand curve and cost information to find the equilibrium price and quantity, then calculating total revenue.

-The Above Figure Shows the Demand and Cost Curves for a Firm