The figure given below shows the revenue and the cost curves of a perfectly competitive firm. Figure 9.3
- Refer to Figure 9.3 and calculate the firm's total revenue at the profit maximizing level of output.

Question

The figure given below shows the revenue and the cost curves of a perfectly competitive firm. Figure 9.3 
- Refer to Figure 9.3 and calculate the firm's total revenue at the profit maximizing level of output.

Quizplus · Accepted Answer

The profit-maximizing level of output is where marginal cost equals marginal revenue. At this level, the firm's total revenue is calculated by multiplying the price per unit by the quantity sold, which is $196.

The Figure Given Below Shows the Revenue and the Cost