Asked by Teresa Griffin on Apr 24, 2024
Verified
The profit-maximizing firm will be earning total revenue of about
A) $800.
B) $556.
C) $400.
D) $650.
Profit-Maximizing
A strategy or process by which a firm decides on the price and output level that leads to the highest profit.
Total Revenue
The total amount of money received by a company for goods sold or services provided during a certain time period.
- Analyze the economic impacts of monopolies on prices and output levels.
Verified Answer
AR
Abdellah RahmouneMay 02, 2024
Final Answer :
A
Explanation :
The profit-maximizing firm's total revenue is determined by the price at which it can sell its product multiplied by the quantity of the product it sells. Without specific details on price or quantity, it's impossible to provide a detailed explanation. However, if the question assumes that $800 is the total revenue at the profit-maximizing level of output, then that would be the correct choice based on the information given.
Learning Objectives
- Analyze the economic impacts of monopolies on prices and output levels.