Exhibit 10.4

-Exhibit 10.4 shows the demand,marginal revenue,and cost curves for a monopolistic competitor.If the firm is producing at a profit-maximizing level of output,its total revenue is _____

Question

Exhibit 10.4
 
-Exhibit 10.4 shows the demand,marginal revenue,and cost curves for a monopolistic competitor.If the firm is producing at a profit-maximizing level of output,its total revenue is _____

Quizplus · Accepted Answer

In monopolistic competition, a firm maximizes profit where marginal revenue equals marginal cost. The total revenue is calculated by multiplying the price at this output level by the quantity sold. Based on the given options, $5,700 is the correct total revenue at the profit-maximizing output level.

Exhibit 10.4 -Exhibit 10.4 Shows the Demand,marginal Revenue,and Cost Curves for a Cost