The table given below reports the marginal revenue and marginal cost of Holmes Detective Agency for each client.Table 9.2

-Assume that a firm's marginal revenue curve intersects the rising portion of its marginal cost curve at 500 units of output. At this output level, a profit-maximizing firm's total cost of production is $1,000. If the price of the product is $5 per unit, the total revenue earned by the firm will be:
A)$1,500.
B)$250.
C)$500.
D)$2,500.
E)$1,000.

Question

The table given below reports the marginal revenue and marginal cost of Holmes Detective Agency for each client.Table 9.2
 
-Assume that a firm's marginal revenue curve intersects the rising portion of its marginal cost curve at 500 units of output. At this output level, a profit-maximizing firm's total cost of production is $1,000. If the price of the product is $5 per unit, the total revenue earned by the firm will be:
A)$1,500. 
B)$250. 
C)$500. 
D)$2,500. 
E)$1,000.

Quizplus · Accepted Answer

The total revenue is calculated by multiplying the price per unit ($5) by the number of units sold (500), which equals $2,500.

The Table Given Below Reports the Marginal Revenue and Marginal