The following table shows the units of output sold at different price levels by Gizmo's Inc.Table 11.1

-Refer to Table 11.1. At what level of output is total revenue maximized?
A)3
B)4
C)5
D)6

Question

The following table shows the units of output sold at different price levels by Gizmo's Inc.Table 11.1
 
-Refer to Table 11.1. At what level of output is total revenue maximized?
A)3 
B)4 
C)5 
D)6

Quizplus · Accepted Answer

Total revenue is calculated by multiplying the price by the quantity of output sold. In this table, the price remains constant at $6 per unit, so to maximize revenue, we must look at the quantity of output sold. As we can see from the table, at a quantity of 5 units, the total revenue is $30, which is the highest value in the table. Therefore, C is the correct choice.

The Following Table Shows the Units of Output Sold at Different