Question

question
demand schedule
price (p) quantity (q)
$2 20
$4 16
$6 12
$8 8
$10 4
the table above shows a demand schedule for a product produced by a monopolist. at which price is the total revenue the highest?
provide your answer below:
p = $

Explanation:

Step1: Recall total - revenue formula

Total revenue ($TR$) is calculated as $TR = P\times Q$.

Step2: Calculate $TR$ for each price - quantity pair

When $P = 2$ and $Q = 20$, $TR_1=2\times20 = 40$.
When $P = 4$ and $Q = 16$, $TR_2=4\times16 = 64$.
When $P = 6$ and $Q = 12$, $TR_3=6\times12 = 72$.
When $P = 8$ and $Q = 8$, $TR_4=8\times8 = 64$.
When $P = 10$ and $Q = 4$, $TR_5=10\times4 = 40$.

Step3: Compare total revenues

We compare $TR_1 = 40$, $TR_2 = 64$, $TR_3 = 72$, $TR_4 = 64$, $TR_5 = 40$.

Answer:

$6$