(Figure: The Linear Demand Curve) Use Figure: The Linear Demand Curve.As a producer,you are interested in maximizing your total revenues in this market.At what price should you sell your good? What is the corresponding total revenue?

A) $10;$100
B) $20;$200
C) $0;$100
D) $5;$100

Question

Jacob Gambrell · Accepted Answer

Final Answer : A, Explanation :  The linear demand curve shows that the higher the price, the lower the quantity demanded. To maximize total revenue, the producer should sell at the price where marginal revenue equals zero. This occurs at the midpoint of the demand curve, which is $10. At this price, the producer will sell 10 units, resulting in a total revenue of $100.

(Figure: The Linear Demand Curve) Use Figure: The Linear Demand Curve.As a producer,you are interested in maximizing your total revenues in this market.At what price should you sell your good? What is the corresponding total revenue?

A) $10;$100
B) $20;$200
C) $0;$100
D) $5;$100

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Learning Objectives

Related questions

(Figure: The Linear Demand Curve) Use Figure: The Linear Demand Curve.As a producer,you are interested in maximizing your total revenues in this market.At what price should you sell your good? What is the corresponding total revenue?A) $10;$100B) $20;$200C) $0;$100D) $5;$100

Definitions

Learning Objectives

Learning Objectives

Related questions

(Figure: The Linear Demand Curve) Use Figure: The Linear Demand Curve.As a producer,you are interested in maximizing your total revenues in this market.At what price should you sell your good? What is the corresponding total revenue?

A) $10;$100
B) $20;$200
C) $0;$100
D) $5;$100