Figure 13-7
-Figure 13-7 above shows that the average revenue at point "C" is
A) $3.00.
B) $2.50.
C) $2.00.
D) $1.50.
E) $1.00.

Question

Figure 13-7
-Figure 13-7 above shows that the average revenue at point "C" is
A) $3.00. 
B) $2.50. 
C) $2.00. 
D) $1.50. 
E) $1.00.

Quizplus · Accepted Answer

Point C corresponds to the point where the total revenue is maximized, which occurs where the slope of the total revenue curve is equal to zero. At point C, the average revenue is equal to the total revenue divided by the quantity sold, which is $2.00 ($10 ÷ 5). Therefore, the correct answer is C.

Figure 13-7 -Figure 13-7 Above Shows That the Average Revenue at Point