A profit-maximizing monopoly’s total revenue is equal to

a. p5 × q3.

b. (p5 − p4) × q3.

c. (p5 − p3) × q3.

d. p4 × q5.

Lost your password? Please enter your email address. You will receive a link and will create a new password via email.

Please briefly explain why you feel this question should be reported.

Please briefly explain why you feel this answer should be reported.

Please briefly explain why you feel this user should be reported.

To determine the correct answer, we need to understand the relationship between price (p) and quantity (q) in the context of a monopoly’s total revenue.

Total Revenue (TR) for a firm is calculated as the product of the price (p) it charges for its product and the quantity (q) of the product it sells. Therefore, the formula for total revenue is:

$TR=p\times qTR\; =\; p\; \backslash times\; q$

Given the options, we need to identify which option correctly represents this formula for total revenue. Let’s analyze each option:

a. $p5\times q3p5\; \backslash times\; q3$

b. $(p5-p4)\times q3(p5\; \u2013\; p4)\; \backslash times\; q3$

c. $(p5-p3)\times q3(p5\; \u2013\; p3)\; \backslash times\; q3$

d. $p4\times q5p4\; \backslash times\; q5$

To match the total revenue formula $TR=p\times qTR\; =\; p\; \backslash times\; q$:

The correct option must involve simply multiplying a price term by a quantity term. This means we need an option where the price term and the quantity term are not adjusted or combined with other terms.

Only options (a) and (d) fit the straightforward multiplication form of $p\times qp\; \backslash times\; q$p×q.

Given the structure of the question, the total revenue should match the formula $p\times qp\; \backslash times\; q$p×q directly. Since we do not have any context for the numbers associated with prices and quantities, we can focus on the format.

Thus, the correct option is:

a. $p5\times q3p5\; \backslash times\; q3$

This option represents the total revenue as the product of a price (p5) and a quantity (q3), which fits the formula $TR=p\times qTR\; =\; p\; \backslash times\; q$