A Firm That Is Using Marginal Analysis to Set Prices

Multiple Choice

A firm that is using marginal analysis to set prices finds that setting a price of $180 per unit would result in the sale of 6 units. The total variable cost of production is equal to $300 and total fixed cost is equal to $150. In this case, the firm's total revenue will be _____.

A) $900
B) $1,800
C) $1,980
D) $1,620
E) $1,080