Refer to Figure 5-3. The maximum value of total revenue corresponds to a price of

A) $20.
B) $50.
C) $70.
D) $100.

Question

Refer to Figure 5-3. The maximum value of total revenue corresponds to a price ofA) $20.B) $50.C) $70.D) $100.

Hunter Christie · Accepted Answer

Final Answer : B, Explanation :  The maximum value of total revenue occurs at the price where the demand curve is unit elastic. In many cases, this is at the midpoint of a linear demand curve, which often corresponds to a price of $50 in typical textbook examples.

Refer to Figure 5-3. The maximum value of total revenue corresponds to a price of

A) $20.
B) $50.
C) $70.
D) $100.

Definitions

Learning Objectives

Learning Objectives

Related questions