Exhibit 10-11
-Assume that the firm in Exhibit 10-11 maximizes profit. Its total revenue is

Name: Exhibit 10-11 -Assume that the firm in Exhibit 10-11 maximizes profit. Its total revenue is
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Question

Exhibit 10-11 
-Assume that the firm in Exhibit 10-11 maximizes profit. Its total revenue is

Quizplus · Accepted Answer

To maximize profit, the firm should produce where marginal revenue = marginal cost. In this case, that occurs at a quantity of 4. At that quantity, price = $1,400 and total revenue = price x quantity = $5,600.

Exhibit 10-11 -Assume That the Firm in Exhibit 10-11 Maximizes Profit. Its