Quantity Total Revenue Choice Doners per air conditionen CAu

Quantity Total Revenue Choice (Doners per air conditionen CAur conditioner per year (Px (Q) $150 $30,000 $100 $50 The graph below plots the firm\'s total revenue curve: that is, the relationship between quantity and total revenue given by the two right columns in the table above. The five choices are also labeled. Final, two black anes are shown: ines are tangent to the green curve at ponts Band D. 100 200 200 soo Too sot using the information on the slope of the Ines tangent to the total revenue curve at peintss and D, plot the slope of the total revenue curve on the graph below. (As it turns out, it\'s a straight line, so the two paints rou plot wia determine a line.) SLOPE OF IofALREVENUE (Dollars per Alca Slopu at TR The total revenue curve reaches its maximum air conminners per vear At this paint, the slope of the treal revenue curve is

Solution

The total revenue curve reaches maximum at quantity of 400 air conditioners per year; which is point C (can see from diagram and table).

At point C,since total revenue is nearly horizontal, so its slope will be 0 at this point.