Exhibit 23-2 Refer to Exhibit 23-2. Total revenue at the profit-maximizing quantity of output is the A)area 0P₀AQ₀. B)area 0P₃FQ₀. C)distance from Q₀ to A. D)distance from Q₀ to D.

Question

Quizplus · Accepted Answer

To find total revenue at the profit-maximizing quantity, we need to find where marginal revenue (MR) equals marginal cost (MC). At Q₀, MR=MC, so this is the profit-maximizing quantity. The corresponding price is $13. To find the total revenue at this quantity, we need to find the area of the rectangle with height $13 and width Q₀, which is given by the area 0P₃FQ₀. Therefore, the answer is B.

Exhibit 23-2 Refer to Exhibit 23-2. Total Revenue at the Profit-Maximizing Quantity