The following graph gives cost and revenue data for a monopolist:

-Refer to the above graph to answer this question.If the monopolist is unregulated,what will be the level of its maximum total revenue?
A)$80.
B)$700.
C)$1,400.
D)$3,150.
E)$3,200.

Question

The following graph gives cost and revenue data for a monopolist:
 
-Refer to the above graph to answer this question.If the monopolist is unregulated,what will be the level of its maximum total revenue?
A)$80. 
B)$700. 
C)$1,400. 
D)$3,150. 
E)$3,200.

Quizplus · Accepted Answer

The monopolist's maximum total revenue is reached when marginal revenue equals zero. From the graph, we can see that this occurs at a quantity of 10 units, where total revenue is $3,200.

The Following Graph Gives Cost and Revenue Data for a Monopolist