A profit-maximizing monopoly's total revenue is equal to:

• A. average total cost multiplied by quantity sold (ATC × Q)
• B. marginal cost multiplied by quantity sold (MC × Q)
• C. price multiplied by quantity sold (P × Q)
• D. marginal revenue multiplied by quantity sold (MR × Q)

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the definition of total revenue (TR) in microeconomics. Total revenue is the total amount of money a firm receives from selling its output, which is calculated as the price per unit multiplied by the quantity sold.
2. Step 2: Express total revenue mathematically as \(TR = P \times Q\), where \(P\) is the price per unit and \(Q\) is the quantity sold.
3. Step 3: Recognize that average total cost (ATC) multiplied by quantity sold (\(ATC \times Q\)) gives total cost, not total revenue.
4. Step 4: Understand that marginal cost (MC) multiplied by quantity sold (\(MC \times Q\)) does not represent total revenue; it relates to the cost of producing additional units.
5. Step 5: Know that marginal revenue (MR) multiplied by quantity sold (\(MR \times Q\)) is not total revenue; marginal revenue is the additional revenue from selling one more unit, not the total revenue.