(Table) Based on the table, what is total revenue for John's Tricycle Company if it produces at its profit-maximizing output?
$\begin{array}{|c|c|c|}
\hline \text { Output } & \begin{array}{c}
\text { Marginal } \
\text { Cost }
\end{array} & \begin{array}{c}
\text { Total } \
\text { Revenue }
\end{array} \
\hline 5 & 1,200 & 7,500 \
\hline 6 & 1,300 & 9,000 \
\hline 7 & 1,400 & 10,500 \
\hline 8 & 1,500 & 12,000 \
\hline 9 & 1,600 & 13,500 \
\hline
\end{array}$

Question

Quizplus · Accepted Answer

To maximize profits, a company should produce up to the point where Marginal Cost (MC) equals Marginal Revenue (MR). The table does not directly provide MR, but it can be inferred from the Total Revenue (TR) column. The profit-maximizing output is where the increase in TR from producing an additional unit (the difference between TR at different levels of output) is equal to or just exceeds the MC of producing that unit. Here, the MC of increasing output from 7 to 8 units is $1,500, and the increase in TR from producing the 8th unit (from $10,500 to $12,000) is $1,500, matching the MC. Therefore, the profit-maximizing output is at 8 units, with a total revenue of $12,000.

(Table) Based on the Table, What Is Total Revenue for John's