Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
$200
B
$2000
C
$1000
D
$4000
Understanding the Answer
Let's break down why this is correct
Answer
Total revenue is calculated by multiplying the price at which each unit is sold by the number of units sold. In this case, the marginal revenue is constant at $20 for each unit, meaning the company earns $20 for every unit it sells. Since the company sells 100 units, we can find the total revenue by multiplying the marginal revenue of $20 by the 100 units sold. So, 20 multiplied by 100 equals $2,000. Therefore, the total revenue for the company from selling 100 units is $2,000.
Detailed Explanation
Total revenue is found by multiplying the number of units sold by the marginal revenue per unit. Other options are incorrect because This answer might come from confusing total revenue with revenue from just 10 units; This could happen if someone thinks the marginal revenue is $10 instead of $20.
Key Concepts
Revenue Functions
Topic
Marginal Revenue and Profit Calculations
Difficulty
easy level question
Cognitive Level
understand
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