Figure 14-5
The figure below depicts the cost structure of a firm in a competitive market.

-Refer to Figure 14-5.When market price is P₁,a profit-maximizing firm's total revenue can be represented by the area

Question

Figure 14-5
The figure below depicts the cost structure of a firm in a competitive market.
 
-Refer to Figure 14-5.When market price is P₁,a profit-maximizing firm's total revenue can be represented by the area

Quizplus · Accepted Answer

The total revenue for a firm is calculated by multiplying the market price by the quantity sold. When the market price is P₁, the total revenue is represented by the area P₁ × Q₂, where Q₂ is the quantity sold at price P₁.

Figure 14-5 The Figure Below Depicts the Cost Structure of a Firm