The figure given below shows the revenue and the cost curves of a perfectly competitive firm.Figure 10.3

-Refer to Figure 10.3 and calculate the firm's total revenue at the profit maximizing level of output.

Question

The figure given below shows the revenue and the cost curves of a perfectly competitive firm.Figure 10.3
 
-Refer to Figure 10.3 and calculate the firm's total revenue at the profit maximizing level of output.

Quizplus · Accepted Answer

The profit maximizing level of output is where Marginal Cost (MC) = Marginal Revenue (MR), which is where the firm produces 8 units. At this level of output, the price is $24.
Therefore, the total revenue would be:
Total Revenue = Price x Quantity
Total Revenue = $24 x 8
Total Revenue = $192
Thus, the correct answer is (C) $196.

The Figure Given Below Shows the Revenue and the Cost