Refer to the information provided in Figure 13.2 below to answer the question(s) that follow. Figure 13.2
-Refer to Figure 13.2. The firm's ________ will be maximized at a price of $5.
A) profit
B) marginal revenue
C) total revenue
D) marginal cost

Question

Refer to the information provided in Figure 13.2 below to answer the question(s) that follow.  Figure 13.2
-Refer to Figure 13.2. The firm's ________ will be maximized at a price of $5.
A) profit 
B) marginal revenue 
C) total revenue 
D) marginal cost

Quizplus · Accepted Answer

Total revenue is maximized when the price is set at a level where any increase or decrease would lead to a decrease in total revenue, which typically occurs at the midpoint of a linear demand curve.

Refer to the Information Provided in Figure 13