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

Question

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

Quizplus · Accepted Answer

The correct answer is A because the total revenue is maximized when the quantity demanded is equal to the quantity supplied. In this case, the quantity demanded is 375 magazines a day.

-The Figure Illustrates the Demand for Magazines