The table given below shows the price, marginal revenue and marginal cost of a monopolist at different levels of the output. The firm does not incur a fixed cost of production.Table 11.4

-Refer to Table 11.4 and calculate the total revenue earned by the monopolist at the profit maximizing level of output.
A)$60
B)$16
C)$52
D)$42
E)$30

Question

The table given below shows the price, marginal revenue and marginal cost of a monopolist at different levels of the output. The firm does not incur a fixed cost of production.Table 11.4
 
-Refer to Table 11.4 and calculate the total revenue earned by the monopolist at the profit maximizing level of output.
A)$60 
B)$16 
C)$52 
D)$42 
E)$30

Quizplus · Accepted Answer

The profit maximizing output is where marginal revenue equals marginal cost. In this case, it occurs at an output level of 4. At this level, the price is $13 and the total revenue is simply price multiplied by the output level, which is $13 x 4 = $52. Therefore, the total revenue earned by the monopolist at the profit maximizing level of output is $52.

The Table Given Below Shows the Price, Marginal Revenue and Marginal