Suppose ten pretzels are sold at a price of $8 each and the marginal product of the last unit of labor required to produce pretzels is 5 units. The total revenue of the firm producing pretzels is _____.
A)$80
B)$30
C)$50
D)$6
E)$150

Question

​Suppose ten pretzels are sold at a price of $8 each and the marginal product of the last unit of labor required to produce pretzels is 5 units. The total revenue of the firm producing pretzels is _____.
A)$80
B)$30
C)$50
D)$6
E)$150

Quizplus · Accepted Answer

Total revenue is equal to price times quantity. In this case, the price is $8 and the quantity is 10, so the total revenue is $80.

​Suppose Ten Pretzels Are Sold at a Price of $8

Suppose Ten Pretzels Are Sold at a Price of $8