Based on the graph below, what would total revenue equal at the profit maximizing level of output?

Question

Quizplus · Accepted Answer

To find the profit-maximizing level of output, we need to look for the point on the graph where marginal revenue (MR) equals marginal cost (MC). This occurs at a quantity of 7 units. At this quantity, the price is $125, so total revenue would be:

TR = Price x Quantity

TR = $125 x 7

TR = $875

Therefore, the answer is C) $875.

Based on the Graph Below, What Would Total Revenue Equal