FIGURE 8-6

-Refer to Figure 8-6. What area represents total revenue for the firm when price equals P?

Name: FIGURE 8-6 -Refer to Figure 8-6. What area represents total revenue for the firm when price equals P?
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Question

FIGURE 8-6
 
-Refer to Figure 8-6. What area represents total revenue for the firm when price equals P?

Quizplus · Accepted Answer

Total revenue for a firm is calculated by multiplying the price of the good by the quantity sold. In this case, when the price equals P, the quantity sold is 0q, so the area representing total revenue is the rectangle 0qAP.

FIGURE 8-6 -Refer to Figure 8-6. What Area Represents Total Revenue for Represents