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

-Refer to the graph above to answer this question.At what output is total revenue maximized?
A)30.
B)40.
C)50.
D)60.

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 output is total revenue maximized?
A)30. 
B)40. 
C)50. 
D)60.

Quizplus · Accepted Answer

Total revenue is maximized at the point where marginal revenue is equal to zero. The graph shows that marginal revenue is zero at an output of 30.

The Following Graph Shows the Average and Marginal Revenue Curves