Figure 6.1 -Refer to Figure 6.1. Given MR₂, what is total revenue if the firm produces 60 units and the lowest point of the average-total-cost curve is $4? A) $240 B) $300 C) $400 D) $440 E) The amount cannot be determined from the information given.

Question

Quizplus · Accepted Answer

Total revenue is equal to price times quantity. At an output of 60 units, the marginal revenue is $4. This means that the price is $4. Total revenue is therefore $4 * 60 = $240.

Figure 6.1 -Refer to Figure 6.1. Given MR2, What Is Total Revenue

Figure 6.1 -Refer to Figure 6.1. Given MR₂, What Is Total Revenue