Suppose a firm in a competitive market produces and sells 8 units of output and has a marginal revenue of $8. What would be the firm's total revenue if it instead produced and sold 4 units of output?
A)$4
B)$8
C)$32
D)$64

Question

Quizplus · Accepted Answer

If the firm produces and sells 8 units of output, and its marginal revenue is $8, then its total revenue would be the price per unit ($8) multiplied by the quantity of units sold (8), for a total revenue of $64. 
If the firm instead produced and sold 4 units of output, its total revenue would be the price per unit ($8) multiplied by the quantity of units sold (4), for a total revenue of $32. Thus, choice (C) is the correct answer.

Suppose a Firm in a Competitive Market Produces and Sells