Graph 14-6 This graph depicts the cost structure of a firm in a competitive market.Use the graph to answer the following question(s).
-Refer to Graph 14-6.When market price is P₁, a profit-maximising firm's total revenue can be represented by the area:

Question

Graph 14-6  This graph depicts the cost structure of a firm in a competitive market.Use the graph to answer the following question(s).
-Refer to Graph 14-6.When market price is P₁, a profit-maximising firm's total revenue can be represented by the area:

Quizplus · Accepted Answer

The total revenue of a firm is represented by the area of the rectangle formed by the market price (P₁) and the quantity sold (Q₂). This area is given by P₁ multiplied by Q₂. Therefore, the correct option is C, which represents P₁ multiplied by Q₂.

Graph 14-6 This Graph Depicts the Cost Structure of a Firm