Exhibit 10-3
-Refer to Exhibit 10-3. Total revenue at the profit-maximizing output level is

Question

Exhibit 10-3 
-Refer to Exhibit 10-3. Total revenue at the profit-maximizing output level is

Quizplus · Accepted Answer

To find the profit-maximizing output level, we need to find the quantity at which marginal revenue equals marginal cost. From the table, we can see that at a quantity of 10, both the marginal revenue and marginal cost are $22. At a quantity of 11, the marginal revenue is $20 and the marginal cost is $22, so the profit-maximizing quantity is 10. 
At this quantity, the price is $22 and the quantity sold is 10, so the total revenue is $220. Therefore, the correct answer is (C).

Exhibit 10-3 -Refer to Exhibit 10-3. Total Revenue at the Profit-Maximizing Output