A B C D E Price Quantity (Dollars per air conditioner) (Air conditioners per year) 400 300 200 100 0 TOTAL REVENUE (Thousands of dollars per year) 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. Finally, two black lines are shown; these lines are tangent to the green curve at points B and D. 50 45 40 35 30 25 20 15 10 0 0 A BA C AD 50 100 150 200 250 300 QUANTITY (Air conditioners per year) 0 100 200 300 400 350 Total Revenue (P x Q) (Dollars per year) 0 30,000 40,000 30,000 0 E A 400 ?

A B C D E Price Quantity (Dollars per air conditioner) (Air conditioners per year) 400 300 200 100 0 TOTAL REVENUE (Thousands of dollars per year) 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. Finally, two black lines are shown; these lines are tangent to the green curve at points B and D. 50 45 40 35 30 25 20 15 10 0 0 A BA C AD 50 100 150 200 250 300 QUANTITY (Air conditioners per year) 0 100 200 300 400 350 Total Revenue (P x Q) (Dollars per year) 0 30,000 40,000 30,000 0 E A 400 ?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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