The table given below reports the marginal revenue and marginal cost of Holmes Detective Agency for each client.Table 9.2

-Graphically, a firm's total revenue is represented by the:
A)triangle formed under the demand curve.
B)rectangle formed under the demand curve at a given price and quantity combination.
C)rectangle formed under the average-total-cost curve at a given ATC and quantity combination.
D)triangle formed by a line segment between the demand and average-total-cost curves at any level of output.
E)triangle formed by a line segment between the horizontal axis and the average-total-cost curves at any level of output.

Question

The table given below reports the marginal revenue and marginal cost of Holmes Detective Agency for each client.Table 9.2
 
-Graphically, a firm's total revenue is represented by the:
A)triangle formed under the demand curve. 
B)rectangle formed under the demand curve at a given price and quantity combination. 
C)rectangle formed under the average-total-cost curve at a given ATC and quantity combination. 
D)triangle formed by a line segment between the demand and average-total-cost curves at any level of output. 
E)triangle formed by a line segment between the horizontal axis and the average-total-cost curves at any level of output.

Quizplus · Accepted Answer

Total revenue for a firm is calculated by multiplying the price of the good by the quantity sold. Graphically, this is represented by the area of a rectangle under the demand curve at a specific price and quantity combination, where the height of the rectangle is the price and the width is the quantity.

The Table Given Below Reports the Marginal Revenue and Marginal