Refer to Table 13.3. If a monopoly faces the demand schedule given in the table, at what level of output is its total revenue maximized?

A) 200
B) 300
C) 500
D) 600

Question

Refer to Table 13.3. If a monopoly faces the demand schedule given in the table, at what level of output is its total revenue maximized?A)  200B)  300C)  500D)  600

Madison Janke · Accepted Answer

Final Answer : C, Explanation :  Total revenue is maximized where the change in revenue from selling additional units begins to decrease. To find this, calculate the total revenue at each price point (Price * Quantity) and identify where the increase in total revenue from selling additional units starts to decline. At 500 units (Price = $2.00, Total Revenue = $2.00 * 500 = $1000), total revenue is maximized before it starts to decrease or increase at a decreasing rate with additional units sold.

Refer to Table 13.3. If a monopoly faces the demand schedule given in the table, at what level of output is its total revenue maximized?

A) 200
B) 300
C) 500
D) 600

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