Answer to Question #155970 in Economics of Enterprise for iqra

Question

. Price Quantity Total Cost

2,000 1 1,600

1,800 2 1,800

1,600 3 2,000

For the Monopolist find the TR when the 3rd output is produced.

a)     2,000

b)     4,800

c)     1,600

d)    3,600

Answer 1

Total revenue (TR) is the amount of total earnings received by selling the given quantity at the given price.

$TR = Quantity \times Price \\ = 3 \; units \times 1600 \\ = 4800$

Total revenue is 4800 when the third output is produced.

Answer: b)