Below is productivity data for firm Nearly Done Inc.which purchases resources in a perfectly competitive factor market.

-Refer to the above information to answer this question.At its optimal output,what is Nearly Done's total revenue if the market wage rate is $8.
A)$8.
B)$14.
C)$92.
D)$96.
E)Cannot be determined.

Question

Below is productivity data for firm Nearly Done Inc.which purchases resources in a perfectly competitive factor market.
 
-Refer to the above information to answer this question.At its optimal output,what is Nearly Done's total revenue if the market wage rate is $8.
A)$8. 
B)$14. 
C)$92. 
D)$96. 
E)Cannot be determined.

Quizplus · Accepted Answer

To find the total revenue, we need to find the quantity of output produced at the optimal level and multiply it by the price at which the output is sold. 
From the given table, we can see that at a wage rate of $8, the optimal output level is 23 units.

Total revenue = price × quantity 
= $4.00 × 23 
= $92

Therefore, the answer is (C) $92.

Below Is Productivity Data for Firm Nearly Done Inc