The following table shows the units of the output sold at different price levels by Gizmo's Inc. Table 24.1
Refer to Table 24.1.At what level of output is total revenue maximized?
A)3
B)4
C)5
D)6

Question

The following table shows the units of the output sold at different price levels by Gizmo's Inc. Table 24.1
 Refer to Table 24.1.At what level of output is total revenue maximized?
A)3 
B)4 
C)5 
D)6

Quizplus · Accepted Answer

Total revenue is calculated by multiplying the price by the quantity sold. At a price of $5, the total revenue is highest at a quantity of 5, which is $25. At a quantity of 6, the total revenue decreases to $24. Therefore, total revenue is maximized at a quantity of 5.

The Following Table Shows the Units of the Output Sold