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-(Table: Total Cost and Output) Look at the table Total Cost and Output, which describes Sergei's total costs for his perfectly competitive all-natural ice cream firm. If the market price of a tub of ice cream is $67.50, how much is Sergei's total revenue at the profit-maximizing output?

Question

Use the following to answer questions: 
-(Table: Total Cost and Output) Look at the table Total Cost and Output, which describes Sergei's total costs for his perfectly competitive all-natural ice cream firm. If the market price of a tub of ice cream is $67.50, how much is Sergei's total revenue at the profit-maximizing output?

Quizplus · Accepted Answer

The profit-maximizing output occurs where marginal cost equals the market price. Assuming the table provides the necessary data, calculate the quantity where this condition holds and multiply it by the market price of $67.50 to find the total revenue.

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