Assume that a firm's marginal revenue curve intersects the rising portion of its marginal cost curve at 500 units of output. At this output level, a profit-maximizing firm's total cost of production is $1,000 . If the price of the product is $5 per unit, the total revenue earned by the firm will be:
a. $1,500.
b. $250.
c. $500.
d. $2,500.
e. $1,000.
d
Economics
You might also like to view...
An increase in the quantity of money shifts the aggregate demand curve rightward
Indicate whether the statement is true or false
Economics
"Dividing the economic pie more equally may reduce the size of the economic pie." This argument is characterized as:
a. a conflict between full employment and economic growth. b. a form of discrimination. c. a conflict between equity and efficiency. d. untrue.
Economics