the graph on the right shows the market demand curve for a good. use the graph to find total revenue and…
the graph on the right shows the market demand curve for a good. use the graph to find total revenue and marginal revenue at the given output levels. if the price is $6, then total revenue is $□ thousand.
Answer
Explanation:
Step1: Find quantity at price $6
From the demand - curve graph, when the price is $6, the quantity demanded is 2 thousand units.
Step2: Calculate total revenue
Total revenue (TR) is calculated as $TR = P\times Q$. Here, $P = 6$ and $Q = 2$ (in thousands). So, $TR=6\times2 = 12$ (in thousands of dollars).
Answer:
12