Refer to the accompanying graph to answer the questions that follow.

-If this firm is maximizing profits,total revenue is represented by the area:

Question

Refer to the accompanying graph to answer the questions that follow.
 
-If this firm is maximizing profits,total revenue is represented by the area:

Quizplus · Accepted Answer

In order to maximize profits, the firm will produce where marginal revenue (MR) equals marginal cost (MC), which occurs at quantity Q*. At this quantity, the price is given by point C on the demand curve. Therefore, total revenue is represented by the rectangle formed by Q* and the price at point C, which is area A × C.

Refer to the Accompanying Graph to Answer the Questions That