Use the information about marginal revenue (MR) that is presented in the table below to determine the level of output that maximizes total revenue.
$$\begin{array} { l r r r r r r r r r }
\text { Output } & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 & 9 \
M R & 50 & 40 & 30 & 20 & 10 & 0 & - 10 & - 20 & - 30
\end{array}$$
A) 1
B) 6
C) 9
D) There is not enough information to determine the answer.

Question

Use the information about marginal revenue (MR) that is presented in the table below to determine the level of output that maximizes total revenue.
$$\begin{array} { l r r r r r r r r r } 
\text { Output } & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 & 9 \
M R & 50 & 40 & 30 & 20 & 10 & 0 & - 10 & - 20 & - 30
\end{array}$$
A) 1
B) 6
C) 9
D) There is not enough information to determine the answer.

Quizplus · Accepted Answer

Total revenue is maximized when marginal revenue (MR) is zero. At output level 6, MR is 0, indicating that total revenue is maximized at this level.

Use the Information About Marginal Revenue (MR) That Is Presented