The first 3 columns of the following table show data for a representative firm in an industry.The last 3 columns show the market demand and supply for the type of labour employed by this firm.

-Refer to the information above to answer this question.What is the firm's total revenue if the firm maximizes its profits?
A)$20.
B)$120.
C)$192.
D)$250.
E)$325.

Question

The first 3 columns of the following table show data for a representative firm in an industry.The last 3 columns show the market demand and supply for the type of labour employed by this firm.
 
-Refer to the information above to answer this question.What is the firm's total revenue if the firm maximizes its profits?
A)$20. 
B)$120. 
C)$192. 
D)$250. 
E)$325.

Quizplus · Accepted Answer

To maximize profits, the firm should produce the quantity where marginal revenue (MR) = marginal cost (MC), which is when the firm produces 5 units of output. At 5 units of output, the price the firm can charge is $50, and the total revenue is $250 (TR = P x Q). Therefore, the total revenue for the firm if it maximizes its profits is $250.

The First 3 Columns of the Following Table Show Data