If a firm seeks to maximize total revenue, at what quantity should it produce?
A) where elasticity of demand is greater than 1
B) where marginal revenue is maximized
C) where marginal revenue equals 0
D) where elasticity of demand equals 0

Question

Quizplus · Accepted Answer

Total revenue is maximized at the quantity where marginal revenue equals 0. This is because beyond this point, any additional unit sold would decrease total revenue.

If a Firm Seeks to Maximize Total Revenue, at What