The following graph shows the average and marginal revenue curves for a monopolist:

-Refer to the graph above to answer this question.At what price is total revenue maximized?
A)0.
B)$30.
C)$300.
D)$600.

Question

The following graph shows the average and marginal revenue curves for a monopolist:
 
-Refer to the graph above to answer this question.At what price is total revenue maximized?
A)0. 
B)$30. 
C)$300. 
D)$600.

Quizplus · Accepted Answer

Total revenue is maximized at the quantity where marginal revenue equals zero. From the graph, we can see this occurs at a quantity of 100, which corresponds to a price of $300. Therefore, the answer is C.

The Following Graph Shows the Average and Marginal Revenue Curves