-La Bella Pizza is the only pizza place on Pepper Island. The figure above shows La Bella Pizza's demand curve, marginal revenue curve, and marginal cost curve. At La Bella Pizza's profit-maximizing output, its annual total revenue is

Question

Quizplus · Accepted Answer

At the profit-maximizing output, the quantity is where marginal revenue equals marginal cost. The corresponding price on the demand curve at this quantity gives the total revenue. Based on the given options, $312,000 is the correct total revenue at this output level.

-La Bella Pizza Is the Only Pizza Place on Pepper