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Suppose You Are Viewing a Graph of the Total Revenue

Question 16

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Suppose you are viewing a graph of the total revenue generated from the sale of bananas.On the horizontal axis the numbers indicate the quantity of bananas. On the vertical axis the numbers indicate total revenue. Suppose there are two lines on the graph, A and B,and they only meet when quantity is zero. If, at an output of 10,000 bananas, A lies aboveB, we can say that


A) A corresponds to more bananas than B
B) A represents average revenue at a lower price than B
C) A represents marginal revenue at a higher price than B
D) A represents total revenue at a higher price than B
E) A represents total revenue at a lower price than B

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