The figure given below shows the demand and the cost curves of a perfectly competitive firm. Total revenue at the profit-maximizing output equals _____.
Figure 8.5

Question

The figure given below shows the demand and the cost curves of a perfectly competitive firm. Total revenue at the profit-maximizing output equals _____. ​
Figure 8.5
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Quizplus · Accepted Answer

The profit-maximizing output is where marginal cost equals marginal revenue, which is where the firm produces 7 units of output. The total revenue at 7 units of output is the rectangle formed by the price and quantity, which is $800 x 7 = $5,600. Therefore, the answer is D.

The Figure Given Below Shows the Demand and the Cost