Exhibit 14-1 Refer to Exhibit 14-1.Based on the graph,what would total revenue equal at the profit maximizing level of output?

Name: Exhibit 14-1 Refer to Exhibit 14-1.Based on the graph,what would total revenue equal at the profit maximizing level of output?
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Question

Exhibit 14-1  Refer to Exhibit 14-1.Based on the graph,what would total revenue equal at the profit maximizing level of output?

Quizplus · Accepted Answer

The profit-maximizing output occurs where marginal revenue equals marginal cost, which is 7 units of output. At this level of output, the price is $125 and the total revenue would be $875 (7 units x $125 per unit).