Hey, I’m working through some revision booklets and this question, although quite simple, has confused me a bit. It involves reading numbers off the graph. The solution doesn’t go through much detail and I was wondering if anyone has answered this and can explain their reasons for their answers? Especially f) as this involves a multiplication but doesn’t reference the numbers they have used, thanks.
Hi Imy, For part f), total revenue = price * quantity at the profit maximising output level. We have both of these figures from parts b) and d), so the calculation becomes 5.5 * 31 = 170.5. I hope this helps, Richie
